L&G opens door for huge US-style bonuses for UK asset managers

Update to pay policy includes room for necessary flexibility' to attract best talent to London-listed firm

One of the largest UK pension and insurance firms has opened the door to backing US-style mega-bonuses for London listed companies despite fears that executive pay is fuelling inequality and encouraging short-term risk taking".

Legal & General Investment Management has updated its pay policy to say there is room for the necessary flexibility" needed to attract the best talent. It acknowledges an increased push" by UK companies towards remunerations structures that are more closely aligned to US-style pay".