Cost saving measures within Perpetual have been felt at the senior management level, with executive remuneration slashed, in some cases, by more than 40 per cent.
According to the listed financial services company's annual report, the Perpetual board decided to reduce overall board costs by about 30 per cent or $500,000 from 1 July 2012 following a review.
As part of the changes, Perpetual chairman Peter Scott's remuneration has been reduced by 42 per cent, while non-executive director remuneration, including committee allowances, has been cut by an average of 25 per cent.
"These board cost reductions are being mirrored by an ongoing revision to the remuneration of key management personnel and staff in general to ensure all of our interests are fully aligned with those of shareholders," Scott said in his chairman's report contained in the company's annual report.
"Evidence of that alignment can be seen in the reduction in variable remuneration expenses in the 2012 financial year, which is in line with the company's lower financial performance during the year."
The report said the fixed remuneration for Perpetual's current chief executive, Geoff Lloyd, was $1.1 million, 10 per cent lower than that provided to former managing director Chris Ryan, whose fixed remuneration was $1.2 million.
In February, Ryan stepped down as Perpetual's chief after he and the board shared differing views.
"It became clear that there were differences between [Ryan] . and the board concerning the emphasis and execution of strategy for the immediate and long term. This was disappointing for all concerned," Scott said.
Cost reduction measures have been a key focus for Perpetual during the past six to 12 months.
In June, the group announced details of its Transformation 2015 strategy - a cost saving imitative that seeks to "significantly simplify its corporate structure, refocus its operational activities and capture new opportunities for growth".
The initiative was targeting $50 million of annualised pre-tax run-rate cost reductions by full-year 2015, the report said.
Total implementation costs were expected to be around $70 million before tax, including IT asset impairment, it said.
Perpetual plans to achieve the savings through a series of initiatives focused on its private client division, Perpetual Private.
"In Perpetual Private, a realignment of the advice model is underway to commit more strongly to a limited number of targeted client segments and build services and capabilities specifically for these segments," Lloyd said in his chief executive report.
"Marketing of the Super Wrap offer will be stepped up as the full rollout of the new platform offering nears."
He said a designated project team had been created to "oversee the alignment of Perpetual Investments' and Perpetual Private's investment capabilities".
"Perpetual Private is pressing on with its initiatives in the new business areas of native title trusts and life risk, while at the same time improving its ability to promote its core wealth advice offer," he said.
