New Star Asset Management plans to replace its share incentive plan (Sip) with cash bonuses when the scheme matures in August next year.
The new scheme will consist of cash bonuses for the majority of employees together with a long-term share incentive plan (L-tip) for 35 of the firm’s most senior employees. The L-tip is not expected to mature until December 2012 at the earliest.
Historically, the organisation has not paid cash bonuses to employees. It is expecting to put its proposals for the new scheme to shareholders during the current half year.