The shareholder criticism about pay at Swiss asset manager GAM has yielded some changes: the firm adjusted the way it compensates the management.

The board of GAM agreed to a compensation framework drawn up following a review of the company’s pay policies ordered by GAM Chairman Hugh Scott-Barrett in April 2017, the company said in a statement today.

The framework is based on four guiding principles: pay for performance, alignment with shareholders’ long-term interests, transparency and sound risk management.

Vesting Period Extended

As a consequence of the review, the total variable compensation component will be capped at 5 percent of pretax profit. The chief executive officer and chief financial officer will see their annual bonus capped at 250 percent and 200 percent of their respective salary – still a handsome sum by any standard.

In addition, the share of their annual bonus deferred into GAM shares was increased to 50 percent from 33 percent, and the vesting period extended to four years, from three years.

Shareholder Revolt

The review was prompted by a shareholder revolt initiated by hedge fund manager Rudolf Bohli. GAM included a malus and claw back rule in its new framework, making it possible for the company to respond to an unsatisfactory management performance.

The review was conducted by Nancy Mistretta, under the overview of Scott-Barrett.