Shareholders, including large institutional investors, are
continuing the growing momentum to link executive pay to company
performance.
The UK Investment Association, which represents more than
£7 trillion ($9 trillion) in assets, responded to investor
dissent of FTSE350 companies not acting on executive pay concerns
by issuing a new version of executive pay guidelines for
disclosures in 2019. With a statement claiming, "companies
need to demonstrate the link between pay and company performance.
If they don't, they should brace themselves for more
shareholder revolts". It is clear from this statement that
executive pay and pay regimes are still hot topics.
In the US, the Council of Institutional Investors (CII) have
also commented in the past on the "excessive complexity in
U.S. executive pay plans, and questions on the effectiveness of
approaches to pay-for performance."
