Reaction to ShareSoc Remuneration Guidelines

We are delighted that our guidelines, launched last week have been widely covered and well received. Here is some of the press coverage:

Financial Times: FTSE100 CEO pay “too high”: ShareSoc

Daily Mail: Salaries of ftse 100 chiefs should be slashed says ShareSoc

Scottish Daily Record: Investor group warns FTSE100 pay “too high”

CNN Money: British CEOs should take a 50% pay cut

You can also find an interview with ShareSoc remuneration spokesman, Cliff Weight, on Share Radio, here: https://audioboom.com/boos/4593130-why-are-ftse100-ceos-being-paid-so-much-cliff-weight-of-sharesocuk-talks-bonuses-executivepay-and-the-shareholderspring-cliffw8

 

Key opinion formers also gave their views:

 Sarah Wilson, Chief Executive of Manifest, the corporate governance experts, said “Manifest welcomes ShareSoc’s remuneration guidelines. Retail shareholders are an important but often overlooked constituency in the governance debate having been significantly marginalised by the broker nominee arrangements in recent years which make voting unduly burdensome. We are delighted to be able to support their active ownership and very much value their thoughtful contribution.”

Tim Ward, Chief Executive of The Quoted Companies Alliance commented “The ShareSoc guidelines provide detailed guidance on levels of salary, incentives and the percentage of equity dilution.  These guidelines give companies an insight into what private shareholders expect to see regarding the remuneration of directors in public companies. We are pleased that the ShareSoc guidelines reflect the principles set out in the Quoted Companies Alliance’s Remuneration Committee Guide for Small and Mid-Size Quoted Companies, reflecting mutual support of remuneration disclosures that build trust between investors and companies.”

Oliver Parry, head of corporate governance at the Institute of Directors said, “We welcome ShareSoc’s report, which represents an important intervention in the debate on executive pay. Companies do need listen to shareholders more and respond in a constructive manner. Today’s report highlight’s a number of ways to simplify pay in large companies. The guidance for smaller companies is also a very practical and applicable to both quoted and unquoted companies.”

Catherine Howarth, Chief Executive, ShareAction said “ShareAction endorses and fully supports the guidelines on corporate pay developed by ShareSoc. ShareSoc’s membership is made up of people investing their own money, which gives them a perspective on executive pay that has a good deal more common sense and prudence about it than many professional fund managers who invest other people’s money. We hope the fund managers that invest on behalf of UK pension savers will take a good look and indeed themselves adopt this valuable guidance from ShareSoc.

Paul McManus, Managing Director & Founder of Walbrook PR said: “ShareSoc’s guidelines for smaller companies is incredibly helpful. Working with AIM listed companies Director Remuneration is a hot topic with investors and Boards alike and these pillars give Boards of growing companies access to the concerns and recommendations of their smaller shareholders, alongside their larger institutional investors who have greater access to remuneration decision makers.”

Peter Costain, former CEO of Costain Group Plc and NED of Wessex Water, National Provident plus some others, commented: “Unrestrained greed ultimately will undermine the capitalist cause. How some of the chairs of remcos keep their role defeats me.”

Mark Bentley

 

 

 

Post Date: May 23, 2016