“The Future of Executive Pay” Conference, London
5th May 2009
The last nine months have not been at all easy for remuneration committees, particularly in banks but also in almost every sector of the economy. Existing remuneration arrangements have had to be reviewed in the light of the changed economic landscape and investor demands for greater restraint, while at the same time offering executives the possibility of some reward in the future if they perform well in a very challenging environment. This has been a difficult balancing act.
Financial organisations have also had to take on board the proposals of the Financial Services Authority to reform pay structures, in particular changes to the mix of the packages and the factoring in of risk.
Faced with these challenges, many companies have responded to reduced share prices and/or profits by freezing salary levels for 2009. Some have gone further and reduced 2009 bonus potential and the size of future long-term share awards. When combined with the diminished value of existing long-term awards, remuneration levels are likely to fall over the next few years. And we should not forget that the value of executive shareholdings has also dropped. It appears that, despite press reports to the contrary, the ‘pay for performance’ model is actually working.
Companies have had to react very quickly to events but, once the AGM season is over, we think that remuneration committees will need to consider carefully their future remuneration strategy to ensure that it is fit for purpose over the coming years.
Our half-day seminar will:
- Detail how companies have changed their remuneration policies in 2009, drawing on our experience as advisers to remuneration committees of over 30% of FTSE 350 companies (and a similar proportion of smaller PLCs).
- Explain the implications for companies of the guidance from institutional investors and the FSA and how their views might develop further.
- Consider how remuneration packages might change in the future, in particular in terms of size, structure and performance measurement (and how risk should be handled).
- Explore the implications of the recently announced tax increases and restriction of pension tax relief on executive pay arrangements.
Location
| Venue: | Haberdashers’ Hall, 18 West Smithfield, London EC1A 9HQ |
| Date: | 1 July 2009 |
| Time: | 8.30 a.m. – 2.00 p.m. |
View full details here (PDF).