GOVERNANCE TRENDS (updated to 20 August 2019)

This page tracks the proportion of FTSE companies complying with new requirements around aligning Executive Director pension contribution rates with the broader workforce and introducing post-employment shareholding guidelines. 

 

In particular, we track compliance with the Investment Association's stated position on these new requirements:

On pensions:

For new Executive Director appointments:

  • New Remuneration Policies should make it explicit that any new appointees will have their pension contributions set in line with the pension contributions provided to the majority of the workforce; and

  • New appointees from 1 March 2019 should have pension contributions no higher than the pension contributions provided to the majority of the workforce.

 

For incumbent Executive Directors:

  • Reports will be highlighted where current Executive Directors receive a pension contribution of 25% of salary or more

On post-employment shareholding guidelines:

  • New Remuneration Policies should include a post‑employment shareholding requirement in line with the Investment Association Principles (i.e. the lower of actual shareholding on cessation and the in-post shareholding guideline, for two years). 

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