Top investment managers at Hermes were denied bonuses last year because the performance of the funds they manage failed to meet their targets.
Tony Watson, chief executive of Hermes, said the dramatic downturn in pay demonstrated a clear link between remuneration and performance.
A year ago, Hermes, which campaigns against boardroom excess, faced criticism for its large pay deals when share prices had fallen.
Yesterday, Mr Watson said: "The performance of the funds had not merited any performance payments. They got paid very substantial amounts in the past when they outperformed."
Among those who did not get a bonus was Peter Butler, chief executive of the Hermes Focus funds which target underperforming companies such as Royal & Sun Alliance, Cookson and Rolls-Royce.
According to accounts filed at Companies House for Hermes Focus Asset Management, the lack of bonuses meant Mr Butler's pay fell from £893,299 to £141,200. Steve Brown, a senior investment officer, received £135,617, down from £915,701.
David Pitt-Watson, the managing director of the UK Hermes Focus fund, did receive a £220,000 bonus for performance in previous years rather than last year. Even so, his pay fell from £1.1m to £346,525.
Mr Watson was paid £748,247 by Hermes Pensions Management, the overall company.
This figure included a £327,965 bonus which Mr Watson said would have been "better if the Focus boys had done better".
Mr Watson said his bonus was based on the aggregate performance of the Hermes group, which outperformed its benchmark last year by 46 basis points.
He said the fund managers of the Hermes Focus funds, which manage about 3% of the £36bn Hermes has under its control, could get bonuses again this year because they have made up their investment losses from the previous year.
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