Fidelity Investments employees merit pay increases, slated for July, will be limited to employees in the lower and middle levels of the firms compensation structure, whose potential bonus opportunity is 15% or less of their base pay, spokeswoman Anne Crowley said in an e-mail response to questions.
The move was announced to Fidelity employees Wednesday in a memo from Rodger Lawson, Fidelity president, as part of what the company called further adjustments, hopefully short-term in nature, to ensure Fidelity remains ahead of the curve in coping with a difficult market environment.
Mr. Lawson also told employees that the companys next annual profit-sharing contribution, made in January for the prior year, could be less than the 10% level of the past few years. Funding for bonuses, typically paid in December, could also be less if business results are lower than in 2008, Mr. Lawson said.
While Fidelity continues to do an excellent job, our industry and the economy in which we operate have undergone many changes that have impacted companies across all industries and will continue to do so for the foreseeable future, Mr. Lawson told employees.