The Investment Association (IA) has announced that it has set up a working group, the Executive Remuneration Working Group, to address the perceived complexity of executive pay and the lack of incentives for directors of UK companies to act in the best interests of shareholders over the long term (see our previous post). The remit of the group is to formulate proposals to radically simplify executive rewards.
The IA is the body that has taken up the mantle of custodian of the guidelines on executive pay formerly borne by the Association of British Insurers.
The working group includes:
- Russell King, Remuneration Committee Chairman, Aggreko PLC and Spectris PLC
- Helena Morrissey, Chief Executive, Newton Investment Management and Chair, The Investment Association
- Edmund Truell, Chairman, Strategic Advisory Board of Lancashire and London Pensions Partnership
- David Tyler, Chairman, J Sainsbury PLC
- Nigel Wilson, Group Chief Executive, Legal & General Group PLC
- Daniel Godfrey, Chief Executive, The Investment Association
Proposals are expected to be forthcoming in spring 2016.