Executive Pay in times of crisis

Overview

Executive pay is always an emotive issue, but this has been exacerbated by the issues surrounding the COVID-19 pandemic, where so many organisations have cut or withdrawn dividends or furloughed staff in order to stay in business and we are, increasingly, seeing an expectation that executives will share the pain. According to the FT, 13% of the FTSE 100 have cut executive cash bonuses, but long-term incentive payments often comprise the biggest element of executive pay and can be affected by share price movement.

Directors are accountable for the company’s sustainability and must consider what would be most likely to promote the success of the company for the benefit of its members as a whole. In doing so, they must have regard to a number of factors including the interest of employees and other stakeholders and the likely consequences of any decision in the long term.

Speakers

Peter Swabey, Policy & Research Director at The Chartered Governance Institute will host a panel discussion with Andrew Ninian, Director of Stewardship and Corporate Governance at the Investment Association and a member of a corporate remuneration committee to discuss:

• The Investment Association’s guidance and the adjustments of LTIPs
• The impact of COVID19 – this is more than ever on Board’s agendas

Andrew Ninian, Director, Stewardship and Corporate Governance, The Investment Association

Andrew is responsible for representing The Investment Association members interests as institutional investors on corporate governance and engagement matters. He has oversight of The Investment Association's Institutional Voting Information Service (IVIS), corporate governance policy development and company consultations or collective engagement with the companies in which Investment Association members invest. Andrew joined The Investment Association in June 2014, through the merger of the Investment Affairs division of the ABI with the IMA. He joined the ABI in 2005 as a Corporate Governance Analyst and was promoted to Head of IVIS in October 2011 and Head of Corporate Governance in January 2012. Before joining the ABI, Andrew was a Socially Responsible Investment analyst at HSBC, having joined HSBC's graduate scheme in 2001 after reading Economics at the University of Bath.

Recording

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