The IA has today outlined shareholder expectations on executive pay in light of COVID-19 in its latest guidance to companies.
Shareholders recognise that Remuneration Committees will need to sensitively balance the need to continue to incentivise executive performance at a time where management teams are being asked to demonstrate significant leadership and resilience and ensure the executive experience is commensurate with that of shareholders, employees and other stakeholders.
The impact of COVID-19 will be different for each and every company, whilst there are minimum expectations for every company, shareholders expect Remuneration Committees to take account of their individual circumstances particularly considering the impact on their stakeholders.
Chris Cummings, Chief Executive of the Investment Association said:
“Investment managers expect executive remuneration to be linked to long term company performance and aligned with the experience of its employees, stakeholders and shareholders. During this exceptional period we expect companies to adopt an approach that is appropriate to their business and the specific impacts of COVID-19, being careful to ensure that executives and the general workforce are treated consistently.”
Source: IA
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
As Technology Evolves, Asset Managers Adapt and Innovate
Citi Changes Organizational Structure
SEC Charges Virtu for Disclosures Relating to Information Barriers
ICE Futures Singapore Partners with CoinDesk Indices
Related articles
-
AllUnity, a joint venture between DWS, Flow Traders, and Galaxy will issue EURAU.
-
This expands how investors can access crypto investments and blockchain-native returns.
-
The regulator commented on questions that market participants have presented to staff.
-
Half of advisers are interested in a model portfolio with both traditional and alternative investments.
-
There are enormous opportunities in private credit markets.