Board pay report
Last year, our Incentives practice produced a report analysing how FTSE100 companies and their shareholders reacted to new rules on board pay. These include a binding shareholders' vote on policy and enhanced disclosure requirements, in particular consistently produced single pay figures to enable comparisons to be made across companies.
We recently carried out a second board pay survey of the 2015 AGM season so far. The survey was based on IVIS reports, annual reports and AGM results of most FTSE100 companies up to 10 July 2015. (IVIS reports provide analysis on FTSE company reports, highlighting issues or concerns for its institutional investor members to consider when voting on general meeting resolutions.)
The survey shows that companies have adapted to the new regime relatively quickly. However, shareholders are monitoring companies closely and voicing their concerns, typically about the failure to link pay and performance and the exercise of pay policy discretions.
We constantly monitor developing market practice and continue to communicate changes. To find out more about how we can assist on remuneration issues, contact Gillian Chapman, Alex Beidas, Graham Rowlands-Hempel or your Employment & Incentives contact.