Executive Remuneration Working Group
The Investment Association, which represents the UK's 5.5 trillion investment management industry, has announced the creation of a working group, the Executive Remuneration Working Group, to bring forward proposals for a radical simplification of executive pay.
Concern has been mounting in the investment industry, on company boards and with executives themselves that pay structures are becoming too complex, leading to a lack of clear incentives for company management to act in the best long term interests of the companies themselves and their investors.
The Investment Association's Executive Remuneration Working Group brings together senior representatives from the investment community and the corporate world to address the issue.
The Executive Remuneration Working Group includes:
Russell King, Remuneration Committee Chairman, Aggreko PLC and Spectris PLC
Helena Morrissey, Chief Executive, Newton Investment Management and Chair, The Investment Association
Edmund Truell, Chairman, Strategic Advisory Board of Lancashire and London Pensions Partnership
David Tyler, Chairman, J Sainsbury PLC
Nigel Wilson, Group Chief Executive, Legal General Group PLC
Daniel Godfrey, Chief Executive, The Investment Association
Daniel Godfrey, Chief Executive of the Investment Association said:
"Complex pay structures can make it difficult for investors and the wider community to judge whether high rewards are being earned for exceptional management performance or mediocre performance flattered by favourable external factors. This is an increasing source of reputational damage to business and of concern to investment managers.
"Simplification will help our members in their engagement with companies with the objective of supporting strategies and incentives that lead to long term, sustainable wealth creation for the benefit of our clients, the companies themselves and the economy."
The Working Group is expected to bring forward proposals in the spring of 2016.
Any interested parties who wish to contribute to the project can contact the secretariat, which is headed by Andrew Ninian, Director of Corporate Governance and Engagement, at: remunerationgroup@theinvestmentassociation.org
