Decision-making process for remuneration policy
Downing has a single policy that applies to all employees and partners across the business. The policy covers all aspects of remuneration including partners salaries, bonuses, long term incentive schemes, hiring and severance packages and pension arrangements. Considering the size, internal organisation, nature and scope of Downing, it is not considered to be proportionate to establish a separate remuneration committee.
All decisions on the remuneration of personnel are made by the Board and Partners, who own the business and are collectively responsible for remuneration practices of the firm.
Link between remuneration and performance
The Partners share between themselves the residual annual profits of the Partnership in line with the Members’ Agreement.
Remuneration for employees is comprised of fixed pay (salary and benefits) and variable pay (discretionary performance-related bonuses). Performance related bonuses are designed to reflect performance in individual roles and success against a balanced range of targets. A proportion of variable pay is deferred each year.
Aggregate remuneration for Code Staff
The FCA classifies Code Staff as those staff whose activities could have a material impact on the firm’s risk profile.
The Partnership is required to disclose the aggregate remuneration of Code Staff. For the year ending 31 May 2021 the annual remuneration was £8.1m.
The Partnership considers that it does not operate with distinct business areas given its position as a UK focused fund management business and therefore the aggregate information on remuneration is disclosed for the Partnership as whole. As a result of the limited number of Code Staff within the Partnership, the Partnership considers it appropriate to disclose aggregate remuneration across all Code Staff so as not to prejudice individuals with regard to disclosure of personal information.