After largely escaping controls put in place by Britain\’s Financial Services Authority and European regulators on pay, managers now face rules on how and when bonuses are paid and more pay disclosure, according to the latest consultation paper on the Alternative Investment Fund Managers Directive (AIFMD), PwC said.
It\’s the same rules that bankers\’ bonuses are restricted by. Must be in stock at times, cash payouts delayed in large part for 3-5 years etc etc.
And of course these rules have absolutely nothing at all to do with making the system \”safer\”. Hedge funds do not have either the \”too big to fail\” guarantee nor to they have implicit or explicit government guarantees on depositors\’ funds.
So the arguments that were used to limit bankers\’ pay don\’t work for hedgies\’ pay. But they\’ll do it anyway simply because most European politicians (and all European bureaucrats) are simply horrified by this Anglo-Saxon capitalism shtick. You know, the idea that the workers might get a cut of the profit extorted from the sweat of their brows?
They\’re also, largely, privately held and so don\’t have any liquid stock that people can be paid in.
It\’s driven, quite simply, by a disgust for a capitalism not controlled by the politicians or bureaucrats. If they want to do that there then of course that\’s entirely up to the voters over there. But why in buggery we should put up with their preferences here I\’m not sure.
Perhaps we shouldn\’t eh?