Today’s announcement by Cairn Energy that it will withdraw resolution 2 at its General Meeting next week, demonstrates that shareholders can act on egregious pay awards when they really want to. Cairn had proposed the award of shares to Sir Bill Gammell with a value of £2.5m (based on average closing share price for the […]

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  Since we published data on the number of executive directors in the FTSE 100 sitting on remuneration committees of other FTSE 100 companies, a common question we received was … what if you look beyond the FTSE 100? So we have re-run the numbers, looking at the FTSE All-Share (i.e. FTSE 100, FTSE 250 […]

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Remuneration Committees are struggling to maintain their independence from their CEOs and are adopting increasingly expensive, short-term reward strategies according to the latest Manifest and MM&K Total Remuneration Survey. The Executive Director Total Remuneration Survey 2011 examines the latest crop of remuneration reports of UK companies finding little link between remuneration, performance and shareholder value. Although the […]

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There can be little argument with suggestions that the dynamics of the Remuneration Committee are crucial to ensuring a balanced approach on executive pay issues. Indeed there may be value for shareholders in an amendment to the UK Corporate Governance Code in relation to the diversity of the committee. Many of the worst-performing remuneration committees […]

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Just what is the most appropriate level of executive pay and what is the best approach to aligning interests between executives and shareholders? This little gem of an extract comes from a submission to Australia’s Productivity Commission made in 2009 by Ian Crichton of CRA Plan Managers, a remuneration consultant, may provide some insight. “I […]

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PROXY Governance and the Investor Responsibility Research Center Institute (IRRCi) today released a new study, “Compensation Peer Groups at Companies with High Pay” that identifies a subset of S&P 500 companies with high pay that is not aligned with high performance. The data reveals that high executive pay companies self-select larger than appropriate peers – […]

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Shareholders are getting used to Lord Myners, the UK’s Financial Services Secretary, exhorting them to act responsibly, but his speech at the National Association of Pension Funds recent corporate governance seminar reveals some new insights. Drawing on remuneration surveys from both sides of the Atlantic, Myners noted that in as little as a decade, executive […]

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