SEBI proposes pooled pay disclosure for asset management company staff
“This would provide a holistic and structured view of senior management compensation, enabling unitholders to assess the overall quantum of remuneration at the senior management level, while aligning the level of disclosure with considerations of materiality and proportionality,” SEBI said in a consultation paper. At present, if a ‘star fund manager’ earns Rs 20 crore or Rs 25 crore annually, investors can identify that individual through AMC disclosures. “Under the proposed framework, investors would lose visibility into whether a small group of ‘star fund managers’ are drawing disproportionately large compensation packages. This will reduce transparency. Fund managers are effectively custodians of public savings, and their remuneration should be subject to public disclosure,” said a mutual fund tracker.
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