Korn Ferry’s All-Share Directors’ Pay Guide 2018/19

Korn Ferry’s FTSE All-Share Directors’ Pay Guide 2018/19 provides a useful read on pay trends and practice in FTSE 100, 250 and SmallCap in addition to providing detail on actual pay levels and structure. https://bit.ly/2zwFiQK

The report references a particular “hot topic” debated by Remuneration Committees in 2018 was around whether to implement restricted shares. Arguments for change include greater simplicity and reduced overall quantum. On the other hand, there are concerns around lack of performance hurdles and potentially a reduced incentive for executives to achieve long-term goals. There are also questions around what underpins might apply, and the extent to which a compelling case for change can be made.

Despite the “significant discussions”, only a few companies (such as Weir Group and Card Factory) actually implemented restricted share plans in 2018. It will be interesting to see the extent to which this picture may change in the 2019 AGM season.