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  • [Mercer Japan Co., Ltd.] GPIF announces report to announce “Investigation work on compensation structure (incentive structure) of executives and employees of asset management agencies”

[Mercer Japan Co., Ltd.] GPIF announces report to announce “Investigation work on compensation structure (incentive structure) of executives and employees of asset management agencies”

Mercer Japan Co., Ltd. GPIF Announces Report to Disclose “Investigation Work on Compensation System (Incentive Structure) for Executives and Employees of Asset Management Agency” …………………………………………………………………………………………… Mercer Japan Co., Ltd. (headquarters: Minato-ku, Tokyo, President and CEO Tatsuya Kamoi), the world’s largest HR / organization consulting company, is a Japanese subsidiary of the Government Pension Investment Fund (GPIF). As commissioned research in FY2018, we conducted a survey on the “Compensation system for executive officers and employees of investment management organizations (incentive structure)”. The survey stated that “the compensation structure (incentive structure) of managers and employees of asset management companies is a compensation structure that contributes to the long-term return improvement expected by long-term asset owners such as GPIF, or encourages short termism It was implemented with the awareness of the issue of “Isn’t the incentive structure right?” GPIF has introduced a multi-year contract to active management contractors since FY2018 to strengthen alignment (profit matching) with asset management agencies and secure sustainable and stable investment income. We are moving to a linked compensation system. When thinking about long-term partnerships with asset management agencies, we consider remuneration as an effective means of ensuring alignment.

To the extent that this survey revealed, there was almost no mechanism that encouraged short-termism in the compensation system for executives and employees of GPIF’s asset management agencies. In terms of whether or not it contributes to long-term return improvement, it was found that the investment management institutions that are particularly advanced are devised based on the organization and characteristics of each organization. As a result, we are divided into asset management contractors that use rewards strategically and those that do not. In Japanese investment trusts, there were many cases where remuneration was not utilized strategically in terms of the same structure and level as banks, securities, and insurance companies under the group. GPIF requires investment managers to actively engage in ESG integration and significant ESG issues in investment, but the ESG head’s compensation system is an organization that has established a compensation system that aligns with its position. Were very few. The remuneration system is thought to reflect fundamental ideas such as the investment philosophy of investment institutions and corporate culture, and is also one of the themes of engagement in governance. In the future, GPIF will use it for engagement with asset management agencies and seek best practices, including transparency, and reflect it in evaluations. Check here for the press release of the Government Pension Investment Fund (GPIF) (www.gpif.go.jp/investment/stewardship/survey.html). About Mercer Mercer (English: Mercer, Headquarters: New York, President and CEO: Martine Ferland) is a global consulting firm that provides services in the areas of organization and human resources, benefits, pensions and asset management. Around 25,000 staff worldwide are based in 44 countries, working as a partner of client companies in more than 130 countries, and comprehensively providing optimal solutions. In Japan, we provide services to companies and public organizations in all industries by leveraging our extensive track record and global network for over 40 years. Extensive consulting based on people and organizations, including organizational reform, personnel system construction, welfare / retirement benefit system construction, M & A advisory service, global human resource management foundation construction, salary data service, actuarial actuarial and asset management support・ Services are provided. Mercer is a member of the Marsh & McLennan Companies (Stock Code: MMC) group listed on the New York, Chicago and London Stock Exchanges. For more information about Mercer, see: Mercer Japan www.mercer.co.jp Mercer (Global) www.mercer.com About Marsh & McLennan Companies Marsh & McLennan Companies (New York Stock Exchange Code: MMC) is a corporate group that provides global professional services, providing clients with advice and solutions in the areas of risk, strategy and human resources. Marsh & McLennan Companies consists of Marsh (Insurance Brokerage and Risk Management), Guy Carpenter (Reinsurance Brokerage / Consulting), Mercer (Organization / HR Management Consulting), and Oliver Wyman (Strategic Consulting) With annual revenues of over US $ 17 billion and 76,000 employees worldwide, it analyzes and advises customers around the world and supports various transactions. The Group contributes to the communities in which it operates as a responsible corporate citizen. For more company information please visit www.mmc.com.

For more information about this release(Japanese):
prtimes.jp/main/html/rd/p/000000032.000035512.html ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

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