Asset Allocators' Soapbox: Why excessive CEO pay has to stop

Asset Allocators' Soapbox: Why excessive CEO pay has to stop

clock

Unnecessarily high senior management wages are a significant deal breaker when it comes to equity investing. Charles Heenan takes a look at some solutions...

Equities are an attractive asset class, particularly at a time when the world is travelling down its current unprecedented monetary path. However, there is no hiding the fact they are risky, having to face an uncertain future and constant change, as well as eternal competition.  One issue in particular that has developed over the past few decades to increase the risks associated with the asset class is excessive senior management remuneration, particularly that of CEOs. This continues to drain away returns from equities and, hence, decrease their attraction for shareholders.  The grow...

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

Party politics: Why investors should celebrate AIM's 30th birthday, even if the government won't

Party politics: Why investors should celebrate AIM's 30th birthday, even if the government won't

AIM has helped 4,000 businesses raise £135bn since launch

Eustace Santa Barbara
clock 19 June 2025 • 4 min read
AIM at 30: Why advisers should take a fresh look at the UK's junior market

AIM at 30: Why advisers should take a fresh look at the UK's junior market

'We see AIM as a jewel in the crown with long-term appeal for the right clients'

Oliver Brown
clock 17 June 2025 • 4 min read
Taking the rough with the smooth: How to navigate global market volatility

Taking the rough with the smooth: How to navigate global market volatility

'Like investing, smoothing isn't one-size-fits-all'

James Tothill
clock 13 June 2025 • 4 min read