Bonuses hurting pension funds, says Myners
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Lord Myners is to warn that large bonuses are damaging pension funds.
According to the Times, the City minister will tell the National Association of Pension Funds this morning that British pensioners will be the ultimate losers if shareholders do not do more to crack down on excessive bonuses.
The Times says Myners will tell members of the NAPF that bonuses have been the reason that dividends have been cut in recent months. He will also say that over the past ten years pension fund investments in the sector have yielded nothing for their customers.
Myners wrote to big shareholders last month to urge them to do more to curb bonuses offered in the firms they were invested in.
Readers' comments (4)
Chris F | 9 Feb 2010 10:05 am
From the article: "pension fund investments in the sector have yielded nothing for their customers."
Yet every fund manager is probably wealthy beyond the dreams of many pensioners - and IFAs.
Fund management - tails I win, heads you lose. The people being paid bonuses at the top of PLCs and fund management houses don't care - why should they as they get rich either way.
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Peter Butcher | 9 Feb 2010 10:35 am
Since when has this government be concerned about protecting pension funds?
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Julian Stevens | 9 Feb 2010 11:10 am
(Unjustifiable and unearned) bonuses to FSA staff are also hurting the financial services industry and must surely account to a large extent to the FSA's multi-million pound overdraft which all of us out here are going to have to pay off. What does Myners have to say about that?
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Anonymous | 6 Mar 2010 5:22 pm
he root of the problem is IFA's not looking at the big picture only the commission,you could stop this tomorrow by refusing to invest, REMEMBER BEST ADVICE IS NOT BEST COMMISSION
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