The National Association of Pension Funds (NAPF) has told Britain's biggest companies to keep the lid on executive pay and bonuses or risk shareholder revolts, as it steps up its campaign to improve corporate governance in UK boardrooms.
The NAPF, whose members own about 13% of the stock market, has written to all FTSE 350 chairmen urging them to exercise "pay restraint" for their highest earners, according to The Times. In the letter, seen by The Times, the NAPF demands remuneration structures that are more closely matched to the interests of shareholders and calls on every company to carry out a "best practice" review of its compensation culture. "The objective should be to create simpler structures which better align interests over the longer term and which expose management to significant financial risk in the eve...
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