Magellan Financial Group Ltd’s (ASX: MFG) co-founder and CEO, Hamish Douglass, stands to receive $2.5 million in fixed pay under a new agreement with his company.
Magellan is the $4 billion investment and funds management business from Sydney.
In an announcement to the ASX on Monday, it was announced that Douglass, who is also Magellan’s Chief Investment Officer, stands to receive at least $2.5 million per year in fixed pay. Previously, Douglass was eligible to receive 1.5% of Magellan’s average three-year pre-tax profits.
In a bid to more fully align, “Mr Douglass’ compensation with the interests of clients in the global equity strategy”, Magellan said Douglass can also receive up to 200% of his fixed pay in bonuses if certain criteria are met.
Since its founding in 2004, Magellan’s strong investment track record has lead to growth in assets under management and an increase in fee revenue.
Indeed, Magellan’s strong performance stands out in a market which is increasingly focused on low-cost index fund strategies. According to its update for May 2018, Magellan had $67.3 billion of assets under management. That was up from $52.2 billion a year earlier.
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