Asset Allocators' Soapbox: Why excessive CEO pay has to stop

Asset Allocators' Soapbox: Why excessive CEO pay has to stop

clock

Unnecessarily high senior management wages are a significant deal breaker when it comes to equity investing. Charles Heenan takes a look at some solutions...

Equities are an attractive asset class, particularly at a time when the world is travelling down its current unprecedented monetary path. However, there is no hiding the fact they are risky, having to face an uncertain future and constant change, as well as eternal competition.  One issue in particular that has developed over the past few decades to increase the risks associated with the asset class is excessive senior management remuneration, particularly that of CEOs. This continues to drain away returns from equities and, hence, decrease their attraction for shareholders.  The grow...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Investors told 'hold your nerve' as Iran strikes drive volatility

Investors told 'hold your nerve' as Iran strikes drive volatility

Ongoing conflict impact

Linus Uhlig
clock 02 March 2026 • 3 min read
Smoothed funds are back - but advisers need to look beneath the surface

Smoothed funds are back - but advisers need to look beneath the surface

Defaqto’s Mike Turner examines the smoothed funds backdrop, differences in propositions and what it means for adviser due diligence…

Mike Turner
clock 02 March 2026 • 4 min read
The Year of the Fire Horse – will China gallop ahead?

The Year of the Fire Horse – will China gallop ahead?

'Beneath the volatility, structural trends emerge'

Janet Mui
clock 02 March 2026 • 3 min read