Aberdeen Fund Managers have made a move to cut costs that will probably be welcomed by all, as sales for the company fall. Over the last year and a half, Aberdeen's share price has fallen by around 80%, with non too happy shareholders needing answers. The move to cut costs comes in the form of salary reductions and postponed bonuses for Aberdeen's high paid executives.
In terms of amounts, the salary cuts and bonus deferments could amount to around £3m. The chief executive, Martin Gilbert will be taking a drop of around one third from his £400,000 annual salary. Likewise, another executive in line for a £700,000 bonus may not take it.
Aberdeen as a fund manager has suffered badly due to the problems in the split capital investment trust sector. Falling stock markets have definitely not helped matters and they (together with other fund management groups) may also be looking at a fine from the industry regulator, The Financial Services Authority over the same subject.
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