ON the face of it, the bonus pool arrangement for staff at asset manager Coronation appears to be a good thing.The plan dates back to 2003, shortly before the investment company listed. Coronation stipulated that it would set aside 30% of its pre-tax profits every year for staff, to be paid into a "bonus pool".It describes this system as a "cornerstone" of its success, as it "assists greatly in attracting and retaining world-class talent and it contributes to our owner-managed culture".It also argues that as most of its key competitors are unlisted, it does not disclose its bonus portion because the information is sensitive.In a country in which staff often get the short end of the stick while shareholders end up in the pound seats, you can see why this would be popular — at least within the company.It’s a policy that, especially in recent years, has made some people enormously rich. In the past five years, Coronation’s share price has soared 258%, bolstered by good investment perfo...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.