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Investment Association publishes updated Principles of Remuneration

  • Corporate Governance  Image

11 Nov 2019

The Investment Association (IA) has published its updated Principles of Remuneration ("the Principles").

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.

Updates have been made to reflect current best practice and to reflect the views of the Investment Association’s members in areas such as:

  • The impact of remuneration on wider stakeholders.
  • The consultation process.
  • Approach to leavers.
  • Long-term incentives and alignment or performance conditions with the company strategy.

Additionally the IA has issued a letter to Remuneration Committee chairmen highlighting key aspects of the Principles that its members have identified as areas of focus for the forthcoming AGM season. These are:

  • Alternative remuneration structures;
  • Discretion on vesting outcomes;
  • Approach to pensions;
  • Shareholding requirements and post-employment shareholding requirements;
  • Levels of remuneration; and
  • Pay for performance.

The press release, revised Principles of Remuneration and letter to the chairs of Remuneration Committees are available from the IVIS website.

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