The Investment Association, which represents the UK's £5.5 trillion investment management industry, has established a working group to bring forward proposals for a ‘radical simplification of executive pay’. The Remuneration Working Group is expected to bring forward proposals in the spring of 2016.
It brings together ‘senior representatives from the investment community and the corporate world’:
Daniel Godfrey, Chief Executive of the Investment Association, said:
‘Complex pay structures can make it difficult for investors and the wider community to judge whether high rewards are being earned for exceptional management performance or mediocre performance flattered by favourable external factors. This is an increasing source of reputational damage to business and of concern to investment managers. Simplification will help our members in their engagement with companies with the objective of supporting strategies and incentives that lead to long term, sustainable wealth creation for the benefit of our clients, the companies themselves and the economy.’