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

Darius McDermott: The lessons from 2025 and opportunities ahead

Darius McDermott: The lessons from 2025 and opportunities ahead

'2025 has been a salutary lesson in the difficulty of timing markets'

Darius McDermott
clock 07 January 2026 • 5 min read
Trump, Modi and US-India trade tensions – who cares?

Trump, Modi and US-India trade tensions – who cares?

A bottom-up approach to finding hidden gems

Gabriel Sacks
clock 02 January 2026 • 4 min read
2026: Year of the racehorse or workhorse?

2026: Year of the racehorse or workhorse?

'Every year brings its challenges, and 2026 will be no exception'

Russell Andrews
clock 02 January 2026 • 4 min read