Author: Mirit Ehrenstein

The Investment Association: updated executive pay guidance

In the annual update to their Principles of Remuneration and accompanying letter to remuneration committee chairs, the Investment Association (IA) again emphasise the importance of balancing incentivising executive performance and ensuring that pay outcomes reflect the wider experience of a company’s major stakeholders. This was also the message in the IA’s guidance on Shareholder Expectations during the Covid-19 Pandemic, which they say is still relevant for companies deciding remuneration outcomes for 2021.  

This briefing considers the changes in the updated Principles.