Asset managers and investors in the UK will be paying close attention to executive remuneration in the upcoming AGM season, according to the Investment Association (IA).
A letter was sent by the IA to the remuneration committee chairs of FTSE 350 companies, setting out how investors plan to engage with their portfolio companies on executive pay.
The move comes ahead of the formal publication of the IA’s updated Principles of Remuneration, which is expected later this year.
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The reasoning behind the update is to ensure the competitiveness of the UK’s listed environment and its executive pay practices.
“Investors want a competitive UK listing environment that attracts high quality companies to list and operate in the UK and are working with companies to understand how the structure of executive remuneration can help achieve this,” said Andrew Ninian, director of stewardship, risk and tax at the IA.
“Ultimately, investors want to see companies succeed and deliver long-term returns to their shareholders, with management and the wider workforce being rewarded for delivering that success.”
