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Focus on Pay

The corporate governance pressure points on remuneration and what can we learn from financial sector pay?

Welcome to these “Focus on Pay” podcasts from the Linklaters Employee Incentives team.

Remuneration is a perennial hot topic, and at the moment is coming into sharp focus again, following some headline-grabbing corporate failures, the Covid-19 pandemic, the government’s proposals on restoring trust in audit with implications on pay, and more.

In these podcasts, we are going to look at how we got to the current position on design of pay and what’s likely to happen next. We’ll look at what companies can usefully learn from the way financial sector pay is governed have some top tips to prepare for possible changes.

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Podcast Series 2

 

Risk and pay: lessons from the financial sector
Listen to all our risk and pay episodes below in the left-hand column.
Podcast Series 1

 

Governing pay: how did we get here and where next?
Listen to all our governing pay episodes below in the right-hand column.

Risk and pay: lessons from the financial sector

Episode 1: Setting the scene

A brief look at the regulatory regimes in the financial sector: where they come from and what they say, to provide some context for episodes which follow.

Kaleigh Jones and Ben McCarthy

Governing pay: how did we get here and where next?

Episode 1: Corporate governance disclosures and how they impact pay

The most recent legislative changes affecting remuneration disclosures, investor expectations on compliance with corporate governance requirements in determining pay, and the impact of Covid-19.

Kaleigh Jones and Ben McCarthy

Risk and pay: lessons from the financial sector

Episode 2: Risk adjustment

An increasing focus of how the regulatory regimes are applied in practice, relates to adjustment for financial and non-financial risks. How is this done and what is spilling over into the PLC sphere.

Ben McCarthy and Mirit Ehrenstein

Governing pay: how did we get here and where next?

Episode 2: Corporate governance and private companies

Continuing to look at the developments that have impacted remuneration disclosures, this time what’s happening on corporate governance for large private companies.

Kaleigh Jones and Ben McCarthy

Risk and pay: lessons from the financial sector

Episode 3: Restricted shares and overriding formulaic outcomes

Alternative methods of risk adjustment: restricted shares and overriding formulaic outcomes, and participants’ likely reactions.

Harry Meek and Mirit Ehrenstein

Governing pay: how did we get here and where next?

Episode 3: Four areas of recent focus in governance and executive pay

A detailed look at four distinct governance areas with developing impact on executive pay: pay ratio disclosure, pension contributions, malus and clawback and post-employment shareholding requirements.

Ben McCarthy and Mirit Ehrenstein

Risk and pay: lessons from the financial sector

Episode 4: How do you exercise discretion?

The tricky topic of exercising discretion: what the courts are looking at and avoiding the potential pitfalls.

Kaleigh Jones and Harry Meek 

Governing pay: how did we get here and where next?

Episode 4: ESG and pay, what’s happening and where next?

Another current “hot topic” in the corporate governance landscape and integrating environmental, social and governance factors into pay decision-making processes.

Harry Meek and Mirit Ehrenstein

Risk and pay: lessons from the financial sector

Episode 5: Malus and clawback

Applying malus and clawback: when; what for - the trigger events; how - the process to follow, and on which awards?

Kaleigh Jones and Ben McCarthy

Governing pay: how did we get here and where next?

Episode 5: Stronger malus and clawback? Government proposals on executive pay

What’s in store for corporate governance and remuneration following the government’s recent executive pay proposals in the White Paper on audit reform.

Harry Meek and Kaleigh Jones 

Risk and pay: lessons from the financial sector

Episode 6: Freezing awards

Freezing awards at any time before vesting time is a sort of half-way house to malus. Why and how to do it. And to conclude, some top tips

Ben McCarthy and Harry Meek

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