Pension-fund managers and most mutual-fund managers are evaluated by their employers and industry consultants on relative performance.
Over the past year we have met with trustees of many of these funds advising them of our preliminary findings, as well as reviewing investment performance reports prepared by their broker- consultants.
FORBES: The Long Overdue Florida Public Pension Clean-Up (November 21, 2007 )
Since consultants recommend asset allocations and money managers (and frequently push specific managers), consultants have tremendous influence regarding overall fund performance.
FORBES: Public Pension Shortfalls and Consultant Conflicts (September 1, 2002 )
Actuaries and investment consultants exert tremendous influence over the investment performance of pensions since they advise funds regarding projected liabilities and design investment programs intended to address these obligations.
FORBES: Actuarial Limitations of Liability? (LOL) Laugh Out Loud! (December 1, 2002 )
Finally, Compensation Committees will ask their consultants to analyze their relationship between pay and performance well in advance of their proxy going to print in order to address key issues and ensure that shareholders appreciate their pay for performance story.
FORBES: 2012 Say on Pay Predictions: How Are They Shaping Up?
Chuck Lucier, of consultants Booz Allen Hamilton, has examined the performance of insiders and outsiders over time and found that, in general, outside chief executives do very well in the early part of their tenure and very badly in the latter part.
Money managers: Misrepresentations regarding assets under management, performance, investment process, credentials, undisclosed financial relationships with consultants.
Here in Florida there are hundreds of public pensions that have utilized conflicted consultants employed by the major wirehouses and have terrible performance to show for it.
"Mr. Corzine was recruited to revitalize a troubled company, and during his entire tenure as CEO he worked tirelessly with the board, firm management and world-class consultants to improve MF Global's operations and performance, " Goldberg said.
Which is just another illustration of how top executive pay retains a huge lottery element, even when remuneration consultants think they're being scientific and linking pay to performance.
The performance of the independent analysts versus in-house analysts is another issue the independent consultants are studying.
Instead of trademarking their acronyms, consultants should seek to understand the decisions that really matter to their clients' business performance, and help managers pick the information techniques that are most appropriate for each of those decisions?
The amount of private work being taken on had not increased, it found, the rate of decline in productivity had slowed, the ratio of full-time consultants to total staff in the NHS had risen and pay rises not linked to performance had slowed.
The pension fund performance reports we reviewed all showed the same ugly results: horrendous underperformance and extensive self-dealing involving consultants.
FORBES: The Long Overdue Florida Public Pension Clean-Up (November 21, 2007 )
At the same time, it also illustrates a large gap between what is expected from these professionals and their performance, and draws attention to the disturbing dearth of guide on these issues that have escaped the attention of most consultants and advisers to these professionals.
FORBES: Why Finance Professionals Need International Business Strategy
Pension consultants have, regardless of any statements to the contrary, a fiduciary duty to their clients. (It is remarkable to us that many consultants will still seriously debate the issue of fiduciary liability.) They exert tremendous influence over the investment performance of the funds they advise arguably the greatest of any provider of investment services to pensions.
应用推荐