IA warns FTSE companies over dividend cuts and executive pay

Firms must take a long-term view of how they treat their stakeholders

Companies should not reduce or rebase their dividends "unnecessarily" and reflect any dividend cancellations or changes to employee pay in their executives' pay, the Investment Association (IA) said in an open letter to FTSE 350 firms.

The trade body wrote to the chairs of the UK's largest companies on behalf of its members pledging to support British businesses through the coronavirus crisis, but outlining a list of demands in return. The letter, signed by the IA's director of stewardship and corporate governance Andrew Ninian, said firms must "demonstrate they are well run and take a long-term view of how they treat their employees, communities, suppliers, pension savers and customers". Investment Week digital edition - 6 April 2020 "Our industry's role is to cut through economic uncertainty and market volatili...