Investment Association to scrutinise managers' pay structures

Natalie Kenway
clock

The Investment Association (IA) has created a working group - with members including Newton Investment Management CEO Helena Morrissey and L&G group chief executive Nigel Wilson - to propose measures that will "radically" simplify pay structures for management teams.

The association said it is concerned investment firms could suffer “reputational damage” as complex pay structures could lead to a lack of clear incentives for boards and executives to act in the best long-term interests of companies and their investors. IA chief executive Daniel Godfrey said: "Complex pay structures can make it difficult for investors and the wider community to judge whether high rewards are being earned for exceptional management performance or mediocre performance flattered by favourable external factors. "This is an increasing source of reputational damage to bus...

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

Quilter's WealthSelect rebalances in response to bond market

Quilter's WealthSelect rebalances in response to bond market

Following recent government bond market performance

Isabel Baxter
clock 17 January 2025 • 1 min read
PA Awards 2025: Multi-asset shortlists revealed

PA Awards 2025: Multi-asset shortlists revealed

The industry’s best in balanced, high yield, adventurous and cautious funds

Professional Adviser
clock 15 January 2025 • 2 min read
PA Working Lunch: Last chance - Seeking exceptional US growth with Baillie Gifford

PA Working Lunch: Last chance - Seeking exceptional US growth with Baillie Gifford

Join PA and Baillie Gifford on Wednesday for an informative online session

Jen Frost
clock 14 January 2025 • 1 min read