Article by Bill Cohen, Orlando Harvey Wood, Feargus Mitchell & Neil Campbell
Introduction
With just six months to go before the start of the new simplified tax regime for UK pensions on 6 April 2006 (A-Day) many employers are currently working to develop policies for post A-Day executive pension provision.
For some organisations, pensions simplification is viewed as merely a tax change and the focus of their attention has been on a tax analysis of the available alternative options. For other organisations, however, pensions simplification raises more fundamental questions about the role which executive pension provision should play in overall executive remuneration.
Remuneration committees are increasingly aware of the need to be satisfied that packages offered are consistent with corporate objectives. As a result, this has led to many of the elements of executive reward (i.e. bonuses, options, performance share plans, etc.) being linked to corporate or individual performance. The
