On 26 November 2012, the Association of British Insurers (‘ABI’) published a revised version of its Principles of Remuneration aimed at the remuneration committees of listed companies. Key changes include the following:

  • the Principles have been up-dated to express a clear preference for simple remuneration structures i.e. one annual bonus incentive and one long-term incentive; and
  • the guidance underlying the Principles has been restructured to be more user-friendly.

Otherwise there have been very few substantive changes to last year’s edition of the Principles, pending the Government’s proposed changes to voting and reporting on executive remuneration due to come into force for listed companies for financial years ending on or after 1 October 2013.1 In the meantime, however, the Principles contain some initial guidance as to the ABI’s approach to remuneration reporting under the proposed new regime.

Introduction to the ABI Principles of Remuneration 2012 available at:

http://www.ivis.co.uk/PDF/Introduction%20to%20the%20Principles%20-%20Nov%202012.pdf

ABI Principles of Remuneration: November 2012 available at:

http://www.ivis.co.uk/ExecutiveRemuneration.aspx