Prudential to cap M&G fund manager pay after Woolnough bags £32m deal

Woolnough-Richard-2008-700x450.jpgPrudential is reportedly working on plans to cap the pay of fund managers at M&G after one fund manager took home £32m over two years.

Sky News reports that the insurance giant is drawing up plans to cap pay at the asset management division, but said there were no details on what pay would be limited to and how a cap would be structured.

Sources say there is some embarrassment around M&G Optimal Income fund manager Richard Woolnough receiving £32m in pay over the past two years.

Details of any pay cap are expected to be released in the company’s annual report in the next few weeks. Prudential and M&G declined Sky News’ requests to comment.

However, Woolnough is likely to face lower pay this year, as the Optimal Income fund saw outflows over 2015.

M&G saw £32bn of gross outflows last year, with £10.9bn of net outflows for the year as retail investors moved away from the asset manager’s bond funds.

Operating profit at M&G stood at £442m for the year, being broadly flat with 2014’s profit.