IMA amends Principles of Remuneration
21 Oct, 2014
The Investment Management Association (IMA) has amended its Principles of Remuneration following the 2014 AGM season. The only change this year is around the use of “allowances” as a part of fixed pay.
Following its merger with the Investment Affairs division of the Association of British Insurers (ABI), the IMA is now responsible for issuing remuneration guidance setting out its members’ views on the role of shareholders and directors in relation to remuneration and the manner in which remuneration should be determined and structured.
Following the 2014 AGM season, the IMA has updated its Principles of Remuneration, noting that its members generally consider the payment of “allowances” to be inconsistent with the spirit of simplicity, clarity and pay for performance. Where a company uses such "allowances" as part of its overall remuneration package, the Remuneration Committee should clearly justify and explain why this is necessary.
The press release and revised Principles of Remuneration are available from the IMA website.
