Sonal Desai
About Sonal Desai
Sonal Desai, Ph.D. (born 1963), serves as President and Chief Executive Officer – Investment Management of Franklin Limited Duration Income Trust (FTF) and has held this officer role since 2018. She is also Director and Executive Vice President at Franklin Advisers, Inc., and Executive Vice President at Franklin Templeton Institutional, LLC, and an officer of certain funds in the Franklin Templeton fund complex . As part of the portfolio management team, Desai has been a portfolio manager for FTF since 2018 . FTF’s historical performance during her tenure includes, for the period ended June 30, 2020: 6-month total return of -5.06% (NAV) and -6.66% (market), 1-year of -3.07% (NAV) and -1.95% (market), 5-year average annual of +0.63% (NAV) and +3.29% (market), and 10-year average annual of +4.04% (NAV) and +4.81% (market) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Franklin Limited Duration Income Trust (FTF) | President & CEO – Investment Management | Since 2018 | Executive leadership and signing officer for FTF registration statements . |
| Franklin Advisers, Inc. | Director and Executive Vice President | At least the past 5 years (as of 2024 proxy) | Senior leadership at the investment manager overseeing fund advisory activities . |
| Franklin Templeton Institutional, LLC | Executive Vice President | At least the past 5 years (as of 2024 proxy) | Institutional leadership roles supporting investment management and distribution . |
| Franklin Templeton/Legg Mason fund complex | Officer of certain funds | Ongoing | Cross-complex governance and oversight as a fund officer . |
External Roles
No external public company directorships or committee roles for Sonal Desai are disclosed in FTF’s proxy filings; her listed roles are within Franklin Templeton affiliates and the fund complex .
Fixed Compensation
FTF does not disclose officer-specific salary/bonus amounts; fund officers’ salaries and expenses are paid by the Investment Manager (Franklin Advisers, Inc.) and are not expenses of the Fund .
| Component | Policy/Notes |
|---|---|
| Base salary | Paid by the Investment Manager; amounts not disclosed in FTF filings . |
| Benefits | Officers participate in benefit plans of the Investment Manager; not a Fund expense . |
Performance Compensation
Franklin’s portfolio manager compensation framework (which applies to portfolio managers including Desai) emphasizes multi-year, investment-driven incentives. Bonuses are generally split between cash and deferred equity in Franklin Resources, Inc. (FRI) and mutual fund shares, with performance measured over 1, 3 and 5 years relative to risk benchmarks/peer groups; awards may also include longer-term restricted equity that vests over time .
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Investment performance vs. benchmarks/peers (pre-tax, 1/3/5yr) | Primary consideration | Not disclosed | Not disclosed | Discretionary within guidelines | Deferred equity awards typically vest over time . |
| Non-investment contributions (business knowledge, teamwork, client service) | Considered | Not disclosed | Not disclosed | Discretionary | N/A . |
| Responsibilities/complexity (AUM, strategies) | Considered | Not disclosed | Not disclosed | Discretionary | N/A . |
| Bonus mix | Cash 50–65%; Restricted FRI stock ~17.5–25%; Mutual fund shares ~17.5–25% | N/A | N/A | N/A | Deferred components vest over time . |
Notes:
- Specific targets, actual results, and payout factors for Desai are not disclosed at the individual level in FTF filings .
- Officers’ compensation is paid by the Investment Manager, not the Fund .
Equity Ownership & Alignment
| Item | As-of | Value/Policy |
|---|---|---|
| Section 16 initial ownership (Form 3) | 12/31/2018 | “No securities are beneficially owned.” (for FTF) . |
| Officers & Trustees ownership (group) | 08/05/2024 | Officers and Trustees, as a group, owned less than 1% of outstanding Common Shares . |
| Officers & Trustees ownership (group) | 08/04/2025 | Officers and Trustees, as a group, owned less than 1% of outstanding Common Shares . |
| Shares outstanding | 08/04/2025 | 40,405,374 Common Shares . |
| Short sales policy (alignment) | Policy | Covered employees are prohibited from short sales (including derivatives creating a net short) of FRI securities and FT-sponsored closed-end funds and ETFs . |
| Pledging policy | Policy | Directors and Executive Officers are prohibited from pledging/hypothecating FRI securities (FRI corporate policy) . |
| Personal trading conflicts | Policy | Prohibits trading that conflicts with FT Funds’ activity (e.g., front running, parallel/against trading) . |
Notes:
- FTF filings do not disclose current individual beneficial ownership for Desai beyond the initial Form 3; portfolio manager fund ownership levels, if any, would typically appear in the SAI, which is referenced but not reproduced in the documents retrieved .
- Trustee investment guideline (for Trustees, not officers): Independent Trustees invest one-third of trustee fees in Franklin funds until holdings equal/exceed 5x retainer; this policy pertains to Trustees, not fund officers .
Employment Terms
| Term | Disclosure |
|---|---|
| Appointment/tenure | Officers are appointed by the Trustees and serve at the pleasure of the Board . |
| Employment agreement | Not disclosed in FTF proxy/registration filings for fund officers . |
| Severance/change-of-control | Not disclosed for fund officers; no individual severance or CoC multiples in FTF filings . |
| Compensation payer | Investment Manager (Franklin Advisers, Inc.) pays officer salaries/expenses; not Fund expenses . |
| Pension/retirement benefits at Fund | No pension or retirement benefits accrued as part of Fund expenses . |
| Indemnification | Standard registration language notes Securities Act indemnification limitations as against public policy and unenforceable for liabilities under the Act . |
| Codes/policies | Code of Ethics for executives and personal investments policy establish conduct, trading, and independence standards . |
Performance & Track Record
| Period End | NAV Total Return | Market Total Return | Notes |
|---|---|---|---|
| 06/30/2020 (6-month) | -5.06% | -6.66% | Pandemic-driven volatility; manager commentary co-signed by Desai . |
| 06/30/2020 (1-year) | -3.07% | -1.95% | . |
| 06/30/2020 (5-year avg annual) | +0.63% | +3.29% | . |
| 06/30/2020 (10-year avg annual) | +4.04% | +4.81% | . |
- Desai has been on the FTF portfolio management team since 2018, alongside other Franklin fixed income PMs .
- Recent proxies confirm continuing service as President & CEO – Investment Management and as an officer of certain funds in the complex .
Risk Indicators & Red Flags
- Hedging/shorting: Covered employees prohibited from short sales of FRI and FT closed-end funds/ETFs; policy reduces misalignment risk .
- Pledging: Directors and Executive Officers prohibited from pledging FRI securities; helps mitigate collateral-driven selling risk at parent level .
- Related party/loans: No officer-related transactions disclosed in FTF proxies; officers’ salaries borne by the Investment Manager .
- Say-on-pay: Not applicable; FTF discloses Trustee compensation but does not hold say-on-pay votes on officer compensation .
Compensation Structure Analysis
- Strong pay-for-performance linkage at the portfolio manager level via multi-year (1/3/5-year) relative performance as the primary determinant of annual bonuses, with a meaningful deferred equity component (FRI stock and mutual fund shares) that vests over time—supportive of longer-term alignment .
- Lack of individual target/actual disclosure for fund officers limits visibility into precise incentive calibrations or guaranteed pay elements; amounts are paid by the Investment Manager, not the Fund .
Investment Implications
- Alignment/retention: The bonus mix (cash plus deferred equity in FRI stock and Franklin funds) and multi-year performance emphasis should incentivize sustained performance and retention of senior PMs like Desai; vesting over time may limit near-term selling pressure from equity awards .
- Selling pressure: Section 16 Form 3 disclosed no FTF ownership at 12/31/2018; proxies indicate Officers/Trustees as a group hold <1%—suggesting low insider selling overhang in FTF shares; short sales of FT funds by covered employees are prohibited, further reducing adverse trading signals .
- Governance and costs: Because officer compensation is paid by the Investment Manager, not the Fund, potential conflicts around officer compensation levels are insulated from Fund expenses; Board oversight and compliance policies add controls but individual employment/severance economics are not disclosed at the Fund level .