Aberdeen Asset Management and Standard Life will reportedly pay out tens of millions of pounds in retention bonuses to stop their top executives leaving during their multi-billion merger deal.
The retention bonuses, totalling around 35 million Pounds sterling, make up part of a 320 million Pounds sterling one-off integration budget announced by the twin fund management groups.
The Scottish domiciled firms with large exposure to Asia and management hubs in Singapore and Hong Kong, employ high profile industry professionals. Among them are Singapore based Hugh Young, the head of Aberdeen’s Asian business, and Harry Nimmo, Standard Life’s small companies specialist.
Sky News first reported that the payments would go towards a certain number of executives who handle large amounts of client money.
Cost Savings Announcement
The two companies are due to send out the deal prospectus this month. It will include more details on the cost savings that Standard Life and Aberdeen expect from the deal. Standard Life announced the 3.8 billion Pounds sterling takeover of Aberdeen to create an 11 billion Pound sterling fund manager in March.
Under the terms of the deal, the bosses of Standard Life and Aberdeen, Keith Skeoch and Martin Gilbert, will hold co-chief executive positions.
Remuneration Issues Grow
In recent weeks Credit Suisse and Standard Chartered have faced a strong pushback from shareholders and activist group on bonuses and reward packages for their respective chief executives and board members.
In contrast Singapore's DBS trimmed its senior management remuneration packages due to performance and and «control lapses» on the regulatory front.
