Your Guide Directors' Remuneration in FTSE 250 Companies
Your guide Directors’ remuneration in FTSE 250 companies The Deloitte Academy: Promoting excellence in the boardroom October 2018 Contents Overview from Mitul Shah 1 1. Introduction 4 2. Main findings 8 3. The current environment 12 4. Salary 32 5. Annual bonus plans 40 6. Long term incentive plans 52 7. Total compensation 66 8. Malus and clawback 70 9. Pensions 74 10. Exit and recruitment policy 78 11. Shareholding 82 12. Non-executive directors’ fees 88 Appendix 1 – Useful websites 96 Appendix 2 – Sample composition 97 Appendix 3 – Methodology 100 Your guide | Directors’ remuneration in FTSE 250 companies Overview from Mitul Shah It has been a year since the Government announced its intention to implement a package of corporate governance reforms designed to “maintain the UK’s reputation for being a ‘dependable and confident place in which to do business’1, and in recent months we have seen details of how these will be effected. The new UK Corporate Governance Code, to take effect for accounting periods beginning on or after 1 January 2019, includes some far reaching changes, and the year ahead will be a period of review and change for many companies. Remuneration committees must look at how best to adapt to an expanded remit around workforce remuneration, as well as a greater focus on how judgment is used to ensure that pay outcomes are justified and supported by performance. Against this backdrop, 2018 has been a mixed year in the FTSE 250 executive pay environment. In terms of pay outcomes, the picture is relatively stable. Overall pay levels have fallen for FTSE 250 chief executives and we have seen continued momentum in companies adopting executive alignment features such as holding periods, as well as strengthening shareholding guidelines for executives.
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