ABI to tackle 'payment for failure' in boardrooms

clock

The Association of British Insurers (ABI) has today published guidelines attacking "payment for failure".

The association, which last issued pay guidance in 2007, said boards of insurers should support "appropriate reward" for the performances of executives. It warned "excessive or undeserved remuneration undermines the efficient operation of the company". The guidance comes after business secretary Vince Cable reiterated his pledge at the Liberal Democrat conference to tackle excessive pay cultures. Bonuses should be held back after "exceptionally negative events" such as market crashes, the ABI said. Overall pay for board members should be compared to pay at other companies to pre...

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 Regulation

TISA urges FCA to rethink targeted support fees and levies proposals

TISA urges FCA to rethink targeted support fees and levies proposals

Could ‘undermine’ the aims of targeted support

Isabel Baxter
clock 12 January 2026 • 2 min read
FCA's targeted support rules set to take effect from April 2026

FCA's targeted support rules set to take effect from April 2026

Regulator plans to open application gateway for firms in March

Isabel Baxter
clock 11 December 2025 • 5 min read
FCA sets out plans to simplify complaints regime

FCA sets out plans to simplify complaints regime

Including requirement for firms to report complaints involving vulnerable clients

Isabel Baxter
clock 04 December 2025 • 2 min read