[ by Melanie Gretchen ]

Will The Man Group spark change?  The largest publicly traded hedge fund firm in the world – which has not been embroiled in recent scandal, no less – is capping its annual cash bonuses for top executives.  Amid client withdrawals, the fund has finally caved to pressure to introduce damage control: in the 3 months ending 12/31/12, the firm's funds suffered a 6th consecutive quarter of money withdrawals and an annual loss of $745 million in 2012 compared with a profit of $187 million in the year earlier.

Under Emmanuel Roman, CEO since last month when Peter Clarke retired, annual cash bonuses will be capped at up to 250% of salary from next year.  In addition, the firm will not pay any bonuses to its top managers for last year, and deferred bonuses will only be rewarded after a 3-year assessment of the performance of the executive.  Mr. Roman, however, though he will not receive a pay increase, nevertheless received a base salary of $1 million for 2012.

"The new plan will increase transparency and alignment with shareholders whilst reducing the complexity and likely quantum of awards." -- The Man Group, in its annual report.

For further details, go to [Dealbook, 3/18/13].