An Interview with Ignite Asia
The Covid-19 pandemic caught everyone unprepared. Hong Kong unemployment rate increased to 4.2% in the three months to March 2020 from 3.7% in the previous period. Executives from banking giants have also announced that they will donate the equivalent of millions of pounds due to the ongoing virus situation.
However, are pay cuts really helping companies through a hard time?
"Implementing pay cuts may risk driving away rock-star portfolio managers," says Andrew McNeilis, managing director of Selby Jennings, Asia Pacific. "It may also send the wrong signal to outsiders about whether cutting pay is the proper way to assist the company through hard times, especially when it applies to strategic decision-makers."
Asset managers are revenue drivers – and critical to success. “Investors might care more about the fact that asset managers can deliver strong returns even during a crisis, rather than how exactly they are being compensated," Andrew advises. "My firm belief is that when people are putting their own money or pension fund money or assets under management with someone else, what they are more worried about is whether they get a fantastic return, not what the individual is paid or might take a pay cut on.”
At an uncertain time, businesses need to be smarter than ever. And what drives the business forward or help the company to get through a tough time will be people. "In tough markets, people need to have the right crew, not carrying any passengers,” says Andrew.
This is an excerpt from an article originally published by Ignite Asia. To read the full article, please visit Ignite Asia.
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