As we recently reported, 2017 is the year when most FTSE100 companies will be putting their new remuneration policies to a shareholders’ binding vote, against an increasingly hostile background of criticism of the size and complexity of directors’ pay packages. For the early starters in the FTSE100, there have already been casualties. Imperial Brands withdrew … Continue Reading
Before the 2017 AGM season gets into full swing seems an opportune time to look back at what happened in the executive pay sphere during 2016 and forward to the challenges that remuneration committees face this year.… Continue Reading
Three publications over the last few weeks are particularly relevant for companies preparing their new remuneration policies for 2017 (including most of the FTSE100). Hermes Investment Management recently published its “Remuneration principles: clarifying expectations”. This is its first solo effort – it previously was part of a group of large investors who jointly published their … Continue Reading
The Investment Association has published a revised version of its “Principles of Remuneration” guidelines, which takes into account the final report of the Executive Remuneration Working Group (a summary of which can be found in our earlier blog post). This is backed up by an open letter to the chairs of all FTSE 350 remuneration … Continue Reading
Aside from the few companies with later year-ends, the last couple of AGMs of the FTSE 100 were held last week, so now would seem an opportune time to summarise the outcomes and trends from the 2016 season. One hallmark of the season was that it appeared to be a re-run of the “shareholder spring” … Continue Reading
As we previously reported, the guidelines on executive remuneration (formerly known as the ABI guidelines) have now come under the auspices of the Investment Association (“IA”). As usual at this time of year, the guidelines (or principles, as we should now call them) have been dusted down. The only substantive change to the principles is that long-term incentives … Continue Reading
The Investment Association (IA) has announced that it has set up a working group, the Executive Remuneration Working Group, to address the perceived complexity of executive pay and the lack of incentives for directors of UK companies to act in the best interests of shareholders over the long term (see our previous post). The remit … Continue Reading
