Moves by the Department of Trade and Industry to make board level remuneration proceedures more tran...
Moves by the Department of Trade and Industry to make board level remuneration proceedures more transparent have been welcomed by the National Association of Pension Funds (NAPF).
The association says the decision to link remuneration more closely to actual company performance should be supported.
It will give investors a clearer view of whether the remuneration packages they are being asked to vote on really are in their own best interests.
The NAPF argues strongly, however, against forcing the changes through legislation as oposed to dropping in the new requirements into the existing Combined Code.
"We hope that the Government will look at amending the Code to provide a quick, effective and flexible solution," the association says.
Recent moves by larger companies to cut final salary schemes may have already persuaded the government to opt for legislation, according to some analysts.
This is particularly true where workers have seen their potential pension income slashed, yet the true value of remuneration packages of board members or higher level executives remains in the dark.
Even worse is situations where company profits are cut because of pension payments to directors.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected