Pension Funds and Incentive Compensation: A Story Based on the Ontario Teachers' Experience

5 Pages Posted: 23 May 2009

See all articles by Robert Bertram

Robert Bertram

United States Agency for International Development (USAID)

Barbara Zvan

University Pension Plan

Date Written: May 20, 2009

Abstract

This article describes the evolution of the incentive compensation system for the investment division of Ontario Teachers' Pension Plan. Today, the system is based on carefully-designed interfaces between actual results, investment benchmarks, risk budgets, and compensation formulas. The authors note that the system is part of a broader compensation structure that rewards managers on the basis of overall absolute fund performance combined with benchmark-relative performance.

Keywords: Integrating Risk and Compensation, Investment Incentive, Pension Fund, Risk Budgeting, Rotman

Suggested Citation

Bertram, Robert and Zvan, Barbara, Pension Funds and Incentive Compensation: A Story Based on the Ontario Teachers' Experience (May 20, 2009). Rotman International Journal of Pension Management, Vol. 2, No. 1, 2009, Available at SSRN: https://ssrn.com/abstract=1408688

Robert Bertram (Contact Author)

United States Agency for International Development (USAID) ( email )

1300 Pennsylvania Avenue NW
Washington, DC 20577
United States

Barbara Zvan

University Pension Plan ( email )

Toronto
Canada

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