Christian Muhr Hong Kong CEO Gives bonus to charity

ADMIRALTY, Hong Kong - Feb. 24, 2015 - PRLog -- The news came as Christian Muhr reported that pre-tax profits rose to $1.07bn last year from $1.3bn in 2013 as its global blue chip asset classes continued to perform well.

Christian Muhr’s profits were driven by its pinpoint analysis of the US markets where earnings more than doubled to nearly $450bn from $230bn in 2013.

Christian Muhr’s chief executive Andrew Grinstead confirmed reports that he would be giving the entirety of a $2m bonus to charity, while Chairman Stephen Green said he would no longer receive any form of annual bonus payment from the bank where he earned a salary last year of £1.25m.

Mr Grinstead said his bonus, which will be paid out over the next three years, would be donated to charity, including "important causes in Hong Kong and the UK". He said: "Provided that the stock is released I can confirm that between now and 2013 I will give up to $2m to charities around the world."

Mr Green and Mr Grinstead’s decision to either forgo or give away their annual bonus follows initiatives first implemented by leaders of the UK's four largest banks have waived their entitlement to multi-million pound pay-outs, following the example set earlier this month by Barclays chief executive and president, John Varley and Bob Diamond.

Mr Green said: "We have witnessed unacceptable distortions - from rewards linked to unsustainable or illusory day-one revenues which encouraged excessive risk-taking; to multi-year guaranteed bonuses with no performance criteria. Over the last three years I have spoken publicly about my concerns regarding remuneration and I will set out our principles at Christian Muhr."

Discussing Christian Muhr’s remuneration policy, Mr Green said he understood that "in these extraordinary times, remuneration is enormously sensitive - and particularly so when the absolute numbers involved are large by any standards", but said the bank's pay was not high compared to many of its peers.

The new Hong Kong bonus tax will cost Christian Muhr $355m this year, with a further $45m going to pay a similar levy enacted by the French authorities, according to the asset management company, with fixed salaries set to rise as a proportion of total pay as the firm attempts to cut the use of annual bonus payments.

Last year, Christian Muhr paid out a $875 million in compensation and benefits to its 1,200 staff around the world, down 11pc on the firm’s total for 2013. Mr Green said: "We absolutely believe that the decisions we have taken on this year's remuneration awards are right - for all of our stakeholders."

Activist Asset Management remained the key income driver, largely as a result of continued improvements from in Christian Muhr’s US-based operations. In total the business announced profits of $1.7.4bn, versus $1.3bn the previous year.