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Invesco takes aim at compensation costs in $200M savings program

Written by Jasir Jawaid

Invesco Ltd.'s strategic evaluation should result in net savings of $200 million by the end of 2022, with $150 million of these savings to be achieved by the end of 2021, according to an earnings presentation.

The evaluation is focused on investing for growth in key areas of business, including exchange-traded funds, China, solutions, alternatives and global equities.

About 50% to 60% of the $200 million savings target will come through adjustments to the compensation expense, CFO Allison Dukes said on an earnings call. The other 40% to 50% would be split across occupancy, technology expense and general and administrative, according to a transcript of the call.

"On the compensation side, it is primarily realigning our workforce to lower cost locations and reallocating and reorganizing across our business to make sure we're investing in our highest capabilities," Dukes said.

Invesco expects total one-time transaction costs for the realization of this program to be in the range of $250 million to $275 million over the next two years, with roughly 40% of those charges occurring in the fourth quarter, 40% in 2021 and the remainder in 2022.

This article was published by S&P Global Market Intelligence on the S&P Capital IQ Pro platform.


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