Tag Archives: compensation

Great Expectations: Hermes joins the fray on UK executive pay

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

Because they’re worth it? More scrutiny of UK executive pay

The Business, Innovation and Skills Committee has launched a corporate governance inquiry, which includes a focus on executive remuneration. The chair of the committee, Ian Wright MP, said: “Whopping pay awards to senior executives are not only vastly bigger than workers could ever expect to receive but often seem to have very little relationship to … Continue Reading

May or May not? Further proposals to get tough on UK executive pay

With the news today that Theresa May will become prime minister this Wednesday, we note with interest reports that she intends to make large companies more accountable by having consumers and employee representatives on boards.  This resurrects an idea put to consultation by BIS during Vince Cable’s watch in the run-up to the introduction of … Continue Reading

The “Brexited” share incentive plan: yet another unknown

Although we’re not in the business of crystal ball-gazing, here are some possible issues relating to Brexit and executive pay, particularly share-based remuneration, that we’d like to throw into the pot (unless that’s too much of a mixed metaphor). It seems unlikely that post-Brexit the UK would impose restrictions on overseas issuers offering their shares … Continue Reading

Shareholder Spring revisited?

Until this week, the remuneration side of this year’s FTSE 100 reporting season was looking decidedly pedestrian, with deckchairs being shuffled ahead of the 2017 AGM season, when all of the  remuneration policies that were approved at the 2014 AGMs are up for re-approval. The near 60% vote against the approval of BP’s Directors’ Remuneration … Continue Reading

Plus ça change: amendment to principles of UK executive remuneration

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

ISS proposes changes to guidelines in France, Canada and Brazil

Institutional Shareholder Services Inc (ISS), the US-based international corporate governance provider, has released its draft 2016 benchmark policy changes for consultation.  There are only three countries where compensation-related changes are proposed: France:   Recent legislative changes in France have reduced to two years the previous requirement for a four-year combined vesting and holding period for performance … Continue Reading

Increased support for executive compensation tax reform on Capitol Hill

Most of us believe that comprehensive tax reform for 2015 is already dead despite Ways and Means Chairman Ryan’s (R-WI) oft-repeated statements to the contrary. But perhaps new life may be breathed into executive compensation reforms.  On the heels of a recent Senate Finance Committee hearing dealing with tax fairness, the committee’s ranking Democrat, Sen. … Continue Reading

Executive compensation disclosures a wasted effort?

Are the ever-increasing US public company disclosures, particularly those dealing with executive compensation, even helpful to the investing public? A recent study commissioned by the Stanford University Rock Center for Corporate Governance, RR Donnelley and Equilar suggests the answer may be no, even among sophisticated institutional investors. The 2015 Investor Survey notes that only 38% of … Continue Reading

Another bashing for the bankers: extension of the period of claw-back

Amongst its recently-announced proposed package of banking reforms, the UK Labour party has suggested that claw-back on bankers’ bonuses should be extended to ten years from the date of payment. With effect from 1 January this year, the Bank of England’s Prudential Regulatory Authority imposed a mandatory claw-back period of seven years from the date of … Continue Reading

BG Group: Goodbye golden hello

BG Group has responded to the numerous reports and opinions that have surrounded its proposed remuneration package to the new CEO, Helge Lund. Less than 24 hours after our blog post which summarised the concerns, BG Group’s announcement, dated 1 December 2014, sets out revisions to the remuneration package and is stated to follow “extensive … Continue Reading

Clawback and HMRC v Martin – where are we now?

As the dust settles on the eagerly awaited HMRC v Martin decision (see our previous blog post), thoughts are inevitably turning to how that decision impacts on an employer’s approach to clawback payments, particularly in the world of variable remuneration. Whilst the judge in the Martin decision was clear that his conclusion turned on the … Continue Reading

Relief for tax on clawback payments – the next instalment of HMRC v Martin

The pressure for companies and firms to claw back earnings paid to executives under various incentive plans has been steadily growing over the last couple of years. There was the clarification in the ABI guidelines on directors’ remuneration on which we reported last November, to PIRC’s two penn’orth on the topic in March, the Bank … Continue Reading

FTSE100 DRRs and AGMs – our first bloody nose as the March-end AGMs begin

Despite it being only a couple of weeks since the December year-end FTSE100 companies’ AGM season finished (details on the results at that point were contained in our previous blog post), we have now begun the March year-end FTSE100 companies’ AGMs.  Week one saw three FTSE100 companies hold their AGMs, with one of them resulting in our … Continue Reading

FTSE100 DRRs and AGMs – so how is the season really progressing? We analyse the numbers so far

Last week saw the last three AGMs of 31 December year-end FTSE100 companies take place, namely for Coca-Cola HBC, RBS and WPP (and all received at least 80% shareholder approval for both parts of the DRR). There was one other AGM (Tesco, which has a February year-end), and two DRRs were released (by SABMiller and … Continue Reading
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