As reported in the FT today, the 20th edition of the Manifest Total Remuneration Survey is now online. The first report was published after the Greenbury Report and over the years the survey has become a staple and trusted resource to support engagement on executive pay by investors, issuers and regulators alike.
Headline numbers do not tell the whole story
Our latest edition shows that after a number of years of falling pay awards for CEOs, remuneration awards are changing. Depending on which figure you look at, it’s either sky-rocketed by 18% or stayed largely flat. How come? The root of the problem is the way the data is presented under the official regulations.
Due to the limitations of the Single Figure of Total Remuneration, which is a lagging indicator, we do not believe that the SFTR gives the full picture. While a single figure, because of its apparent simplicity, is very appealing, executive pay is complex both in context and construction. As we have outlined before, the better predictor of future executive remuneration is Total Remuneration Awarded or TRA. In our evidence to the BEIS select committee we have proposed that companies should provide three figures of remuneration: Total Remuneration Awarded, Total Remuneration Realisable and Total Remuneration Realised.
Have the remuneration reforms changed pay?
Based on recent trends, it does seem executive pay and is now more closely aligned with shareholders than any time since the Greenbury reforms. However, whether it was the introduction of the binding vote, improved disclosure, or better awareness of the executive pay issues more generally it’s hard to pinpoint the precise cause and effect. There remain pockets of concern with some companies receiving significant voting dissent year after year. In our analysis we found 554 instances of high dissent (against plus votes withheld) over 10 years. Surprisingly 59% had two or more high dissent votes and 17% had four or more.
Get the complete picture with the Manifest Total Remuneration Survey
Comprehensive, Objective Data
- The information is collected by experienced analysts based in the UK and is reliable.
- The report contains unique long-term trend data over 20 years.
- The UK Corporate Governance Code, investor stewardship policies and the Quoted Companies Alliance all stress the need for independent advice.
Cost-effective & Accessible
The time and effort costs involved in producing a report of such depth and quality just don’t compare. Remuneration consultant bench-marking can cost many thousands. But for only £750 you can meet your responsibilities with greater ease and confidence knowing that you are fully informed.
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Email: firstname.lastname@example.orgLast Updated: 4 June 2018