ABI to tackle 'payment for failure' in boardrooms

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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...

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