Janus Capital Group is asking its shareholders to vote in favor of a new chief executive officer compensation plan that will cap CEO pay at $10 million, tie it directly to year-over-year change in operating income and comprise it with 40% cash and 60% long-term incentives.

According to the proposal, which Janus outlined in a proxy statement form filed with the U.S. Securities and Exchange Commission, a significant portion of the CEO’s compensation will be determined by whether the company achieves a year-over-year change in operating income of $2 million.

The proposed new compensation plan comes after Janus revealed that it cut the pay of chief executive Richard Weil in 2012 nearly 70% to $6.1 million, compared to $20.3 million in 2010. Weil’s 2010 salary, however, included a $10 million signing bonus when he got the job after leaving PIMCO.

Janus has seen money flow out of its funds every quarter for nearly four years, leading shareholders to call for, among other things, a cut in Weil’s pay.

The company says that Weil’s $6.1 salary put the company in the bottom quartile of its asset management peer group, according to data provided by the salary consulting firm McLagan Partners, Inc.

Under the new structure, the CEO’s salary will consist of a base salary, variable cash compensation (tied to both company and individual performance), and long term incentives, which will include restricted stock, mutual fund units, performance shares and stock options.

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