Executive pay

Executive pay has been a hot topic for some time, particularly in relation to UK incorporated quoted companies. The UK Government consulted on ways to strengthen the link between pay and performance and addressed the issue through greater transparency, enhanced shareholder voting rights and more diversity in board rooms. Reforms to the executive remuneration framework took effect from October 1, 2013 but it continues to be an issue at many AGMs and an Executive Remuneration Working Group established by the Investment Association published a report on the topic in July 2016. A number of organisations have considered the issue of executive remuneration and bodies representing institutional investors have their own guidelines on executive pay and performance, severance pay, golden parachutes and executive compensation generally.

Executive remuneration framework

Institutional investor guidance

Other reports and developments

Our briefings

  • Executive remuneration: Revised regulations published - March 2013
  • Executive remuneration: Draft legislation published - July 2012
  • Executive remuneration: Reforms announced by the Government - June 2012
  • Executive remuneration: Consultation on voting rights for shareholders - March 2012
  • Executive remuneration: The Government’s proposals - January 2012