The Investment Association Principles of Remuneration for 2025

The IA have just published their Principles of Remuneration which reflect the evolving landscape of executive pay in the UK and give greater flexibility to companies to adopt more tailored arrangements.

 The principles are less prescriptive than before and are not rigid rules to be followed. Indeed, the IA encourage companies to ensure that they adopt reward arrangements appropriate to their business needs, but also provide sufficient justification for their choices.

 A key change to the principles is an acknowledgement that schemes which combine performance shares and restricted stock may be appropriate to companies with ‘a significant US footprint and/or compete for global talent’. Principles of Remuneration 2025 - Final.pdf (theia.org)