Download This PaperPension Funds and Incentive Compensation: A Story Based on the Ontario Teachers' Experience
5 Pages Posted: 23 May 2009
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: 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
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.