UPDATED – Aberdeen Asset Management said in its latest annual report that “taking account of the financial performance in 2016” salaries for its employees earning more than £75,000 “other than by exception … will be frozen going into 2017.”
The salary freeze applies to all executive directors of the company.
In the year to September 30, Aberdeen’s underlying profit before tax fell to £352.7 million from £491.6 million the year before, net revenue was down 14% to £1.007 billion and net outflows were £32.8 billion.
Aberdeen’s remuneration committee chairman Richard Mully wrote in the annual report: ” … 2016 has been a challenging year, both for Aberdeen and for the asset management sector generally, and this is reflected in the reduced profit reported for the year.
“While investment performance in our equities strategies has recovered strongly and other asset classes have also delivered consistent performance, the board has remained conscious of the effect of net AuM (assets under management) outflows.
“Management has focused on cost control and maintaining the group’s operating margin, whilst continuing our emphasis on conduct and risk management.
“The level of dividend paid to shareholders has been maintained and remains covered.
“Nevertheless, incentive payments are 40% lower than that paid in 2015.”