The Victorian Funds Management Corporation (VFMC) is looking at removing the 20 per cent limit on bonuses for investment staff.

Currently bonuses are limited to one fifth of a government employee’s salary, but in light of the difficulties of drawing world-class staff, VFMC is hopeful of lifting that limit this quarter. Base remuneration levels are also being reviewed but Jeff Rogers, VFMC head of investment, said the exercise was not just about salary. “It’s also about making the fund an employer of choice,” Rogers said. That also involves being proactive in the investment space. VFMC is using headhunting firms in both London and New York as it looks to fill investment team positions created by a splitting of alpha and beta responsibilities. Newly created roles heading ‘strategy’ and ‘implementation’ are understood to be almost filled, as the fund takes on some asset consulting responsibilities internally. But the recruitment process also required existing personal to re-apply for their jobs, and resulted in the ultimate retrenchment of William Graus and Mary McLaughlin in June.