The reform of executive pay – speaking engagement

Many thanks to the FTSE 100 Remuneration Group (comprising Group Reward Directors from the UK’s largest companies) for inviting me to speak at their meeting today.  

I shared data and insights from the recent Purposeful Company report which shows that for those FTSE companies implementing alternatives to the conventional LTIP, the construct likely to achieve 90%+ shareholder support is restricted shares with a 50% discount, underpins and higher shareholding requirements. This narrow bandwidth of market practice emerging may however be too limiting, and we are at an inflection point. If niche adoption is all that investors want, companies and their advisers now know how to secure approval to a standard template proposal. To enable a wider range of market practice to emerge we need:  

Investors to be more visibly supportive of alternatives

Clients of proxy agencies to demand a new operating model – the methodologies for how alternatives are evaluated is a critical part of enabling reform.

Companies to routinely consider alternatives as part of their policy review – the conventional LTIP should not be an unchallenged default.

The full report can be found at https://bit.ly/2SnCsXx