The Investment Association has published its annual letter to chairs of FTSE 350 Remuneration Committees on key issues for investors in relation to remuneration ahead of the 2024 AGM season. The IA is still reviewing its Principles of Remuneration, following discussions held with a number of FTSE 350 companies, and it will publish the updated Principles later this year.
In the letter, the IA notes that there was strong alignment in 2023 between investors and companies in relation to workforce pay and executive remuneration against the backdrop of high inflation in the UK. The IA anticipates that inflation will continue to be an issue this year. The letter also reports that, in the context of the wider discussions about the competitiveness of UK markets, flexibility to offer higher LTIP awards and the use of hybrid schemes (including both performance and restricted shares) were highlighted as ways to improve the competitiveness of UK remuneration.
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