This remuneration guidance sets 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.  The Principles have not been significantly amended and include only one change in relation to long-term incentives.

Additionally the IA has issued a letter to Remuneration Committee chairmen highlighting key aspects of the Principles that its members have asked to be re-emphasised to companies.  These include:

• Salary increases – Investors continue to be concerned by the level and frequency of salary increases.  The letter indicates that salary increases will continue to be an area of scrutiny for members and they will expect to see salary increases being supported with “clear and explicit” rationale; especially those above inflation or in excess of increases provided to the general workforce.
• Bonus disclosure - Shareholders require the retrospective disclosure of bonus targets so that they can ensure that there is an appropriate link between pay and performance.
• Pensions – There is a concern with the size of pension increases and the complex pension arrangements for Executive Directors.  It is expected that pension arrangements should be aligned with those in the rest of the company. 

The revised Principles of Remuneration and letter to Remuneration Committee chairmen are available from the IVIS website.

*Update 05/07/2016 - a revised Principles of Remuneration was published in July 2016.  This is available on the IVIS website*