Man Group Hedge Fund Cuts CEO Clarke's Guaranteed Pay 61% to $2.7 Million

Man Group Plc, the largest publicly traded hedge-fund firm, slashed Chief Executive Officer Peter Clarke’s guaranteed pay by 61 percent after profit fell from a drop in fees.

Clarke received compensation “not subject to conditionality” of $2.7 million, down from $6.9 million a year earlier, according to London-based Man Group’s annual report, published today. Finance Director Kevin Hayes received $1.7 million in unconditional compensation for the year ended March 31, down from $3.6 million, the company said.

Man Group said last month profit before tax fell to $541 million in the year through March from $743 million a year earlier. The hedge fund manager also said it would buy GLG Partners Inc., creating a firm with $63 billion in assets and easing dependence on Man AHL Diversified Plc, an investment program that accounted for $21.2 billion in funds, more than half of Man Group’s assets.

Clarke, 49, received a $750,000 cash performance bonus and $1 million in a mandatory deferral program for the year, compared with $6 million in bonus eligible for a deferred pay program in 2009, the report showed.

Including options, share grants and long-term incentives, Clarke’s total compensation for the year has “potential economic value” of $7.6 million, compared with $10.5 million a year earlier, according to the report.

Man Group also said it valued its stake in BlueCrest Capital Management Ltd., Europe’s third-largest hedge fund firm, at $256 million, up 18 percent from a year earlier.

Hedge funds are private, lightly regulated pools of capital whose managers can buy or sell assets, bet on falling as well as rising asset prices and participate in profits from money invested.

To contact the reporter on this story: Tom Cahill in London at tcahill@bloomberg.net

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