Investment Association calls on companies to keep executive pay and bonuses in check

Urges “restraint”

The Investment Association has called for “continued restraint” on executive pay and bonuses in the year ahead as the UK continues to recover from the pandemic.

In a letter to chairs of the FTSE350 Renumeration Committees, the IA said investment managers will expect companies to restrict executive bonuses where government support has been taken and not paid back. The trade body highlighted that while the majority of companies have been "sensitive" to the experiences of their stakeholders - including employees and customers - investors will be watching to ensure this continues next year. According to the IA, ESG metrics should be used in determining pay and bonuses, and the metrics should be clearly linked to company strategy. IA reinstates...