Submit Content
Get the latest delivered to your inbox
Privacy Policy

Outcomes-Aligned Incentive Structures for Investment Managers and Their Employees

Is the accurate measurement of outcomes a pre-requisite for impact investing, or does too much focus on the precision of measurement act as a barrier to progressing the wider impact story?

Published 04-22-20

Submitted by Acre

Click here to watch video

 

Download the whitepaper here

We are experiencing a transition to an era where total social benefit is becoming an increasingly important metric for the perceived value of products and services. Consequently, the investment industry is risking its enduring relevance and credibility by assessing and subsequently rewarding success through solely financial metrics.

For this roundtable discussion, and subsequent whitepaper summarising the discussion, we assembled representatives from asset owners, investment managers, family offices, foundations, private equity groups and a responsible remuneration specialist to discuss the potential for outcomes-based investment products to offer an opportunity for investment managers to deliver greater value for their clients.

We feel this is a topic worthy of focus due to our experiences working with clients to build teams that are incentivised to create and manage products that allow them to invest in companies with profitable business models which deliver scalable, net positive, impact as a function of their growing business models. 

The whitepaper provides insight on:

  • Demand: Investor appetite for managers to demonstrate additional value beyond traditional risk and return considerations

  • Data: How can pre-agreed outcomes be accurately measured? Can Investment managers manage what they can’t measure?

  • Examples​: Practical applications from existing fund managers: Who’s using outcomes as part of their inventive structure and how are they doing it?

"This paper considers how the incentive structures for asset management companies and their employees should be evolving in regard to impact outcomes, whether it be for dedicated impact managers or indeed the wider investment market.​

Can we learn from the progress fund management companies have already made regarding imbedding impact into rewards structures? â€‹

Can we learn from the successes and can we learn more from the failures in this area?"

Mark Thompson, Roundtable Chair

Download the whitepaper here​

About Acre

Acre provides global financial institutions and investors access to the most established network of talent to build teams that not only outperform the markets, but also support the transition to a sustainable economy. Acre’s pioneering work in responsible investment, sustainable finance and impact investing has created the largest global recruitment network of its kind. To get in touch with them, email impactinvesting@acre.com, or visit acre.com/impact-investing

Acre logo

Acre

Acre

​About Acre

At Acre, we work with the most aspirational businesses with potential to make real change; from those who are just starting out to those who are well on the journey to crafting a legacy.

Our 18 years' experience in sustainability recruitment, combined with our extensive global network, enables us to provide talent solutions that are designed to deliver this change.

Through our unique behavioural assessment technology, we understand the types of people, skills and behaviours required to create impact. We can develop these qualities within your existing teams too.

We find talented people and develop their skills to ensure they make a true impact in ambitious, progressive organisations.

Acre. Making companies ready for tomorrow.

 

More from Acre

Join today and get the latest delivered to your inbox