Modern Slavery Act Transparency Statement
Hudson Advisors UK Limited (“HAUK”) is committed to carrying out its business ethically and prudently, ensuring that the crimes of slavery and human trafficking do not take place in any part of its business or supply chain.
A copy of HAUK’s anti-slavery and human trafficking statement for the financial year ending December 31, 2022 can be obtained by writing to the UK Compliance Department at Hudson Advisors UK Limited, 8 Hanover Street, London, W1S 1YQ, United Kingdom. Requests will be responded to within 30 days.
Remuneration Disclosure Statement
Hudson Advisors UK Limited (“HAUK” or “the Firm”) is authorized and regulated by the Financial Conduct Authority (“FCA”) as an Exempt CAD firm to conduct the regulated activities of advising and arranging (with a restriction to corporate finance business only). As a small and non-interconnected (“SNI”) MIFIDPRU (as defined below) investment firm, HAUK makes certain qualitative and quantitative disclosures in accordance with the Disclosure chapter of the FCA’s Prudential sourcebook for MiFID Investment Firms (“MIFIDPRU”).
Pursuant to these rules, this document summarizes the:
In developing the qualitative disclosures in points (i) to (iv) above, the Firm has considered its size and internal organization, and the nature, scope and complexity of its activities.
Approach and Objectives
HAUK’s business model and strategy is to provide support to its parent entity Hudson Advisors L.P. (“HAL” and, together with its subsidiaries applicable, “Hudson”, which is itself an SEC regulated entity) in the furtherance of its provision of services to clients. Hudson provides investment advisory and related services to private funds (collectively the “Funds”) and certain related investment vehicles and separately managed accounts (which Hudson refers to collectively with the Funds as its “Clients”) from offices in North America, Europe, Asia Pacific, and Latin America.
Hudson’s approach to remuneration is designed so that fixed and variable compensation is consistent with and promotes effective risk management, and does not encourage risk-taking that is inconsistent with the risk profile of HAUK.
Hudson believes that it is in the best interest of the organization and its employees to fairly compensate its workforce for the value of the work provided. Compensation is designed to be consistent with the competitive market range of the position based on the skills, knowledge, and behaviors required. The compensation program must be flexible enough to recruit and retain a highly qualified workforce.
Governance and Decision Making
Hudson has established a Compensation Committee, which meets as needed to (i) oversee Hudson’s overall compensation philosophy, policies and programs; (ii) administer and make recommendations with respect to Hudson’s incentive compensation; (iii) oversee the evaluation and compensation or other incentive arrangements of executive officers; and (iv) approve, and amend or modify, the terms of any compensation plans as appropriate. A member of the HAUK Board is also a member of the Hudson Compensation Committee.
The Hudson Compensation Committee has overall responsibility for defining, approving and overseeing Hudson’s remuneration policy. The HAUK Board confirms the applicability of Hudson’s remuneration policy for HAUK.
Key Characteristics of Remuneration Policy and Practices
Remuneration consists of fixed and variable components which is designed to be consistent with and promote effective risk management, and not encourage risk-taking that is inconsistent with the risk profile of the Firm. The fixed component must represent a sufficiently high proportion of total remuneration to enable the operation of a fully flexible policy on variable remuneration, including the possibility of paying no variable remuneration component.
Fixed remuneration is comprised of salary and benefits (including pension contributions, medical cover and life assurance) and is based on an individual’s role and professional experience and organizational responsibility. Fixed remuneration is permanent, pre-determined, non-discretionary, non-revocable and not dependent on performance.
Variable remuneration includes performance bonuses, which are based on a pre-determined target as a percentage of base salary. An additional performance bonus may be awarded for exceptional performance. Performance bonuses are designed to reflect the long-term performance of the staff member as well as performance in excess of the staff member’s job description and terms of employment. Financial and non-financial criteria are considered in determining variable remuneration and include, without limitation, supporting the business strategy, objectives and interests of the Funds, measurement of performance related indicators with respect to the overall performance of investments, assessments of compliance with governance and control functions, avoidance of conflicts of interests.
Other variable remuneration includes sign-on bonuses, retention bonuses and severance pay.
Total Remuneration Split Between Fixed and Variable
The table below sets out the total amount of remuneration awarded by HAUK to all staff split into fixed and variable remuneration.
|For the year ended December 31, 2022
|Total Fixed Remuneration
|Total Variable Remuneration
1Separately from their HAUK remuneration as reflected in the chart, certain employees receive incentive interests in Hudson employee co-investment vehicles that invest in the Lone Star Funds’ investments and/or receive carried interest for legacy Lone Star Fund investments.