Perpetual slashes its dividend and bonuses to financial planners following market volatility.
Perpetual has cut its dividend and the bonuses of numerous staff members, chief executive David Deverall said.
Prompting the decision is the intensifying bear market, which has hurt the company's earnings and forced the firm to preserve capital.
Deverall said he has taken a 60 per cent cut to his own remuneration but would not comment specifically on adviser bonus reductions.
"The way the bonus pool works is that it is tied closely to the profitability of the business," he said.
He said planners who perform exceptionally "will still get a very good bonus".
Perpetual revealed yesterday its net profit has tumbled 29 per cent to $128.8 million for the year to June 30.
The company's total dividend was cut to 330 cents for 2008, from 360 cents a year earlier.
Perpetual's retail and intermediary businesses, made up of clients who typically invest through advisers using wraps and platforms, lost $5.5 billion in funds under management to $22 billion for the period.
Deverall blamed poor equity markets and outflows in Perpetual's Industrial Share Fund and fixed-interest products.
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