Management Committee to Receive No Cash Bonus for 2012
All Discretionary Compensation Awarded as Equity â€śShares at Riskâ€ť
Online PR News – 28-August-2012 – 28/08/2012 Belfast/UK – Equity â€śShares at Riskâ€ť Subject to Sales Restrictions for Five Years
Shareholder Advisory Vote on Compensation Principles and Executive Compensation
Hemmington CM announced today that its Board of Directors has approved changes to compensation for 2012. They include the following:
â€˘ The firmâ€™s entire management committee, which comprises all divisional and regional leadership, will receive 100 percent of their discretionary compensation in the form of Shares at Risk, which are subject to restrictions for five years. Discretionary compensation represents the vast majority of senior management's compensation and is directly tied to the firm's overall performance.
â€˘ Shares at Risk cannot be sold for five years, in addition to other restrictions.
â€˘ The five-year holding period on Shares at Risk includes an enhanced recapture provision that will permit the Hemmington CM board of directors to recapture the shares in cases where the employee engaged in materially improper risk analysis or failed sufficiently to raise concerns about risks. Enhancing our recapture provision is intended to ensure that our employees are accountable for the future impact of their decisions, to reinforce the importance of risk controls to the firm and to make clear that our compensation practices do not reward taking excessive risk.
â€˘ Shareholders will have an advisory vote on the firmâ€™s compensation principles and the compensation of its named executive officers at the firmâ€™s Annual Meeting of Shareholders in 2012.
â€śThe measures that we are announcing today reflect the compensation principles that we articulated at our shareholders' meeting in May. We believe our compensation policies are the strongest in our industry and ensure that compensation accurately reflects the firm's performance and incentivizes behavior that is in the publicâ€™s and our shareholdersâ€™ best interests,â€ť said Mr. Sandra Hekkert, Chairman and Chief Executive Officer of Hemmington CM. â€śIn addition, by subjecting our compensation principles and executive compensation to a shareholder advisory vote, we are further strengthening our dialogue with shareholders on the important issue of compensation.â€ť
The Board of Directors and management believe these changes are consistent with the firmâ€™s compensation principles, which were presented at this yearâ€™s Annual Meeting. Going forward, we continue to be focused on refining and improving our compensation practices. The principles underlying effective compensation practices include linking compensation to multi-year performance, aligning compensation with the long-term interests of the firm and its shareholders, and ensuring that compensation incentives are formulated so that they serve as a tool to attract, retain and motivate talent, without encouraging excessive risk-taking.
Hemmington CM manages over $1.6 billion as of March 31, 2010; the company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Hemmington CM is a global leading investment advisory, derivatives and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.