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Standard Life Aberdeen staff anger over ‘zero bonuses’

Spring Statement PoundsStandard Life Aberdeen staff are are up in arms after the group has cut bonuses to many staff and has handed others zero – a “doughnut” payout – according to The Telegraph.

Bonuses across the company have dropped significantly after it saw more than £40bn outflows during 2018, the paper reports.

One insider told The Telegraph: “People are not happy. Some wanted as much as previous years, but that was never going to happen.”

Another senior source told the newspaper that he was preparing for a pay cut but was “shocked” that the final figure was so low.

The news comes after the firm ended its joint chief executive structure last month. The structure had been in place since its merger was completed in 2017.

Keith Skeoch was handed the solo leadership role, while former Aberdeen Asset Management boss Martin Gilbert has become vice chairman of the group.

Elsewhere, Standard Life won a legal battle over an £109m Lloyds investment mandate. A tribunal ruled in favour of Standard Life, in a dispute that dates back to February 2018 when Lloyds decided that a major account managed for subsidiary Scottish Widows by Aberdeen Asset Management should be pulled because of the merger, bringing the firm in “clear and material” competition with Scottish Widows.

Arbitration ruled in its favour, deciding that Lloyds was not entitled to give notice of its intention to withdraw from the deal.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Neil Liversidge 1st April 2019 at 9:16 am

    Bonus structures need to be clearly defined in advance and be 100% transparent. That’s the way I designed ours and consequently, all the staff can work out for themselves, at any moment during the year, what the bonus situation is looking like. If it’s not made clear and transparent in advance then that will inevitably cause dissatisfaction with and distrust of whatever system is being used to work out who gets what if anything. It amazes me that highly paid management teams are too inept to work this out and change they way they do things accordingly. Or maybe they like to keep it vague so they can short change some and play favourites with others?

    • Really Neil …..

      Are there not more pressing things that need to be addressed today other than Standard Life bonuses ?

      The vast majority of Ifa practices risk their lungs being ripped out on the wisdom of the FCA and you are talking bonus structures?

  2. And er…. what was the Directors/senior management bonus for overseeing the catastrophic collapse in investor share value over the last 12 months?

  3. People do understand what “bonus” means, right? As opposed to “contractual pay”?

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