Beleaguered Man Group boss Clarke heads for the exit

World's biggest listed hedge fund's chief leaves with a pay-off after investors' patience snaps over backfiring performance

The beleaguered boss of the world's biggest listed hedge fund yesterday bowed to pressure and quit with a pay-off worth at least $925,000 (£576,000).

Man Group's chief executive, Peter Clarke, whose $7m pay package drew fierce criticism earlier this year in the so-called shareholder spring, has been battling for some time to turn around the stuttering performance of the business, which has been hit by the misfiring of its flagship AHL fund.

But investor patience finally snapped yesterday as Man announced that Mr Clarke would be replaced by the chief operating officer, Manny Roman, from 28 February.

Mr Roman joined the group in 2010 when Man bought GLG, the hedge fund he co-founded, for $1.6bn. Many in the City believe Man paid too high a price for the deal.

A company spokeswoman said Mr Clarke would be paid his full salary as a consultant to Mr Roman for a year, although he will not be entitled to a bonus for 2012.

The chief executive, who had a personal holding of nearly 5.2 million shares in the business, will also keep his share options, although these are largely underwater after Mr Clarke oversaw a precipitous 77 per cent plunge in the share price since the beginning of last year. The stock rose 4.96 per cent, or 3.65p, to 77.3p on news of his exit.

The company has $60bn under management but has been bleeding cash as investors take their money elsewhere, and dropped out of the FTSE 100 index in June. The firm swooped for the "fund of funds" manager FRM in the summer, boosting assets by more than $8bn, although the underlying business is less healthy, with more than $2.2bn pulled out in the three months to 30 September.

Mr Clarke, who joined Man from the investment banking industry in 1993 and took the helm in March 2007, has been stripping costs out of the business, with more than $200m in savings under way. He also presided over a boardroom shake-up in the summer which saw WPP boss Sir Martin Sorrell's son Jonathan become chief financial officer.

But Man has faced severe difficulties with AHL, the algorithm-driven "black box" fund which makes money by picking out trends and trading, and has suffered badly as a result of stock-market volatility and quantitative easing by several central banks.

AHL, which accounts for more than half of Man's profits, is down 12 per cent since 2009 and remained 14 per cent below peak in the three months to September.

Arun Melmane, analyst at Canaccord Genuity, said: "His departure doesn't come as a great surprise. It feels like he is now paying for the GLG acquisition, which was overpriced in hindsight. AHL still has a disproportionate impact on Man's revenues. If you look at equity markets, AHL is momentum driven; it needs long-term trends and lower volatility to consistently make money."

Mr Clarke has tried to diversify by siphoning off $1.5bn of the AHL cash under a new "evolution" fund vehicle, which is up 18 per cent this year.

Shore Capital's Owen Jones said: "Evolution is doing well, but it is too little, too late. Man is still more expensive than their competitors and there's a little bit of inertia there. They also paid a lot for GLG and it hasn't come through to earnings."

Roman emperor manny takes on mantle

Emmanuel "Manny" Roman will be paid a $1m-a-year basic salary when he takes over from Peter Clarke next year, but this is little more than chicken feed to a man worth around £130m.

The keen wine collector will not formally gain the title of chief executive until February, but City analysts say the current chief operating officer is already the real power behind the throne at the hedge-fund giant.

The Goldman Sachs veteran of 17 years joined GLG as a partner in 2005, before hitting the jackpot in 2010 when Man came in with a vastly overpriced $1.6bn takeover. At the time of the merger, GLG was leaner than its larger rival, with 300 staff managing $24bn against Man's 1,600 staff and $40bn in assets. Since then several Man executives have been eased out in favour of GLG staff.

Mr Roman, brasher than the mild mannered Mr Clarke, may yet sharpen the axe to trim more fat.

News
Kenny Ireland, pictured in 2010.
peopleActor, from House of Cards and Benidorm, was 68
News
A scene from the video shows students mock rioting
newsSchool leaver's YouTube video features staging of a playground gun massacre
Travel
travel
Environment
View from the Llanberis Track to the mountain lake Llyn
Du’r Arddu
environmentA large chunk of Mount Snowdon, in north Wales, is up for sale
PROMOTED VIDEO
Voices
A family sit and enjoy a quiet train journey
voicesForcing us to overhear dull phone conversations is an offensive act, says Simon Kelner
Arts and Entertainment
The cast of The Big Bang Theory in a still from the show
tvBig Bang Theory filming delayed by contract dispute over actors' pay
Sport
England celebrate a wicket for Moeen Ali
sportMoeen Ali stars with five wickets as Cook's men level India series
News
Morrissey pictured in 2013
people
Life and Style
The director of Wall-E Andrew Stanton with Angus MacLane's Lego model
gadgetsDesign made in Pixar animator’s spare time could get retail release
News
peopleGuitarist, who played with Aerosmith, Lou Reed and Alice Cooper among others, was 71
Travel
travel
News
Robyn Lawley
people
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
people
News
i100  ... he was into holy war way before it was on trend
Arts and Entertainment
High-flyer: Chris Pratt in 'Guardians of the Galaxy'
filmThe film is surprisingly witty, but could do with taking itself more seriously, says Geoffrey Macnab
News
people
Life and Style
food + drinkVegetarians enjoy food as much as anyone else, writes Susan Elkin
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

1st Line Support Technician / Application Support

£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...

Team Secretary - (Client Development/Sales Team) - Wimbledon

£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...

Accountant / Assistant Management Accountant

Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...

Senior Investment Accounting Change Manager

£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...

Day In a Page

Save the tiger: Tiger, tiger burning less brightly as numbers plummet

Tiger, tiger burning less brightly

When William Blake wrote his famous poem there were probably more than 100,000 tigers in the wild. These days they probably number around 3,200
A tale of two presidents: George W Bush downs his paintbrush to pen father’s life story

A tale of two presidents

George W Bush downs his paintbrush to pen father’s life story
Save the tiger: The day America’s love of backyard tigers led to a horrific bloodbath

The day America’s love of backyard tigers led to a horrific bloodbath

With only six per cent of the US population of these amazing big cats held in zoos, the Zanesville incident in 2011 was inevitable
Samuel Beckett's biographer reveals secrets of the writer's time as a French Resistance spy

How Samuel Beckett became a French Resistance spy

As this year's Samuel Beckett festival opens in Enniskillen, James Knowlson, recalls how the Irish writer risked his life for liberty and narrowly escaped capture by the Gestapo
We will remember them: relatives still honour those who fought in the Great War

We will remember them

Relatives still honour those who fought in the Great War
Star Wars Episode VII is being shot on film - and now Kodak is launching a last-ditch bid to keep celluloid alive

Kodak's last-ditch bid to keep celluloid alive

Director J J Abrams and a few digital refuseniks shoot movies on film. Simon Usborne wonders what the fuss is about
Once stilted and melodramatic, Hollywood is giving acting in video games a makeover

Acting in video games gets a makeover

David Crookes meets two of the genre's most popular voices
Could our smartphones soon be diagnosing diseases via Health Kit and Google Fit?

Could smartphones soon be diagnosing diseases?

Health Kit and Google Fit have been described as "the beginning of a health revolution"
Ryanair has turned on the 'charm offensive' but can we learn to love the cut-price carrier again?

Can we learn to love Ryanair again?

Four recent travellers give their verdicts on the carrier's improved customer service
Billionaire founder of Spanx launches range of jeans that offers

Spanx launches range of jeans

The jeans come in two styles, multiple cuts and three washes and will go on sale in the UK in October
10 best over-ear headphones

Aural pleasure: 10 best over-ear headphones

Listen to your favourite tracks with this selection, offering everything from lambskin earmuffs to stainless steel
Commonwealth Games 2014: David Millar ready to serve up gold for his beloved Scotland in the end

Commonwealth Games

David Millar ready to serve up gold for his beloved Scotland in the end
UCI Mountain Bike World Cup 2014: Downhill all the way to the top for the Atherton siblings

UCI Mountain Bike World Cup

Downhill all the way to the top for the Atherton siblings
Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain