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...
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