TALENT – THE INVESTMENT FIRM MAGIC DUST 

Investment Firm success depends vitally on talented investment managers delivering strong and consistent investment results.

Good investment results are the observed returns, but also delivered over the right timeframe inside the defined risk profile. Both risk and return are important.

Investment results are more impressive when they are delivered consistently over time. In other words, as the investment track record builds.

Investment track record is at the heart of the investment firm’s brand attractiveness.  As track record extends and improves, the investment firm’s brand image and reputation strengthen too.

In turn the Assets Under Management (AUM) increase strongly too because:

  • AUM mandates are retained.
  • The investment return increases AUM; and
  • New mandates are attracted. 

Bigger AUM increases revenue strongly due to higher flat and success fees.

Lack of track record is a strong barrier to entry.  New players often rely on “Star” talent from established Investment names to be credible.

The main cost of the investment firm is talent, which can be very big. The compensation model can deliver high pay on success, with a major part of that based on variable pay linked strongly to delivered observable success.
 

However,  the marginal cost of extra AUM is low compared to the extra revenue. That profile drives profitability up strongly. In short, the business model has high operational leverage.

Spending compensation on the right talent in the right way is central to investment firm success.  

Small wonder then that investment firms take such care with their extensive, complicated, and expensive compensation programmes. Retaining and attracting top talent is the keystone to the investment firm virtuous circle.

Talent delivers the investment track record. Track record drives AUM growth, which in turn drives revenue, and profit growth.  It is those profits that fund high bonus delivery, which retains and attract top quality talent. Which delivers ongoing investment track record, and so on round and round.

Robert Head

Lead Consultant

Robert works with organisations of all types as a reward consultant or interim reward professional providing reward solutions, interim management and consultancy.

Robert is experienced in working across multiple sectors (including public listed, private equity, commercial, financial, non-profit, and charity).

Robert has deep subject matter reward experience in corporate governance, executive reward, remuneration committees, reward strategy, reward policy, annual bonus, long-term incentives, transformation and change, corporate actions, mergers and acquisitions, and restructuring.

Robert is experienced in stakeholder management working closely with Chairs and executive directors including CEOs and CFOs, non-executive director members of remuneration committees, members of executive committees including business unit CEOs/Presidents, senior HR business partners and other line executives, senior management in other organisations, outside specialists and advisers, and investors.

Robert Head Corpgro

Jane Allen

Lead Consultant

Jane has over 30 years of Reward experience within listed multinational organisations and consultancy environments.

Her expertise covers Total Reward (strategy and programmes), benefits & wellness, pensions, executive compensation, Remuneration Committee support, annual and long-term incentives, VCPs (value creation plans), M&As and restructuring.

Jane has successfully established reward teams and best practices for all key reward processes, leading on complex local and international issues across UK and US listed, family owned, and PE backed ownership structures.

She has a keen interest in ESG and how this can be reflected within Executive Pay to align with the long-term sustainability of businesses. 

Jane is a Fellow of the Pensions Management Institute and a Chartered Insurer. She is an independent Trustee for The Economist Pension Plan.

Damian Carnelll

founder director

CORPGRO is a reward consultancy specialising in executive incentives particularly those connected with growth; and ESG.

Damian has extensive experience advising leading companies on all aspects of executive compensation and equity plans. He was previously with Willis Towers Watson, Aon, and Ernst and Young. 

Damian’s extensive experience in executive compensation and equity plans means he is fully familiar with Corporate Governance norms, institutional shareholder views and proxy voting both advisory and binding.

Damian Carnell Corpgro