Neil Woodford takes bold step
Star fund manager Neil Woodford has put an end to bonuses at his firm.
All 35 staff at Woodford Investment Management have been put on a flat salary.
According to an investigation by The Times, Woodford arrived at this decision to discourage “short-term” decision-making.
The firm’s co-founder Craig Newman increased employees’ base salaries to ensure no-one is left worse off. The average salary at the firm was £225,000 in 2015.
He said: “Neil and I wanted to take the opportunity to do something different that supports the firm’s culture and ethos of challenging the status quo.”
“There is little correlation between bonus and performance and this is backed by widespread academic evidence,” he added.