Many Canadian corporates use a certain number of U.S. companies for peer comparisons in their executive pay decisions. This has raised some concern among investors as U.S. executives receive higher pay on average. ISS-Corporate looked into why Canadian companies include U.S. counterparts in their peer groups and whether such comparisons may be used improperly to inflate pay packages. While the overall proportion of U.S. companies used in peer groups has changed little over the last six years, there are wide variations between industries. We found that many of the Canadian companies need to look across the border for valid comparisons because they are competing with U.S. counterparts for talent and because there are too few Canadian counterparts to form a robust peer group of similar businesses. Go here to read the full report by ISS-Corporate’s Ted Seaton, Vice President, Compensation & Governance Advisory: https://lnkd.in/g7Vj6Eve Find out more about ISS-Corporate’s executive compensation solutions here: https://lnkd.in/ek3HXfcb #CEOpay #ExecutiveCompensation #Canada
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The 2024 AGM season is likely to provide early indications of the evolution of the executive pay model in the UK, with the potential for a greater shift in 2025. We have now published our FTSE 100 mid-AGM season executive remuneration update based on the first 65 FTSE 100 companies to publish their 2023 Annual Report. Read more below. #executivepay #PwCUK
We have now published our FTSE 100 mid-AGM season #executivepay update based on the first 65 FTSE 100 companies to publish their 2023 Annual Report. Our analysis shows that average total remuneration of FTSE 100 CEOs was slightly higher last year (up 7% versus 2022), primarily driven by higher long term incentive outcomes. We’re seeing more companies seeking support for substantially higher pay packages this year, in the context of the growing debate about the UK’s competitiveness and the role that executive remuneration can play. Of the 18 FTSE 100 companies putting forward a new Remuneration Policy for shareholder approval at their 2024 AGM, 9 of them are proposing increases to variable pay opportunities (and 2 proposing "non-standard" structures). A further 9 companies are increasing variable pay opportunities within their existing Policy limits. On this basis, the 2024 AGM season is likely to provide early indications of the evolution of the executive pay model in the UK, with the potential for a greater shift in 2025 as companies adopt a “wait and see” approach. See below for a summary of the key findings from our analysis. Please get in touch if you would like a copy of our report!
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In the ongoing debate on international competitiveness, the outcomes of this AGM season are set to offer valuable insights. What's not debatable is that the business landscape is evolving and companies, as well as the market, will need to be adaptable to these changing dynamics to remain relevant. #ExecutivePay #PwCUK
We have now published our FTSE 100 mid-AGM season #executivepay update based on the first 65 FTSE 100 companies to publish their 2023 Annual Report. Our analysis shows that average total remuneration of FTSE 100 CEOs was slightly higher last year (up 7% versus 2022), primarily driven by higher long term incentive outcomes. We’re seeing more companies seeking support for substantially higher pay packages this year, in the context of the growing debate about the UK’s competitiveness and the role that executive remuneration can play. Of the 18 FTSE 100 companies putting forward a new Remuneration Policy for shareholder approval at their 2024 AGM, 9 of them are proposing increases to variable pay opportunities (and 2 proposing "non-standard" structures). A further 9 companies are increasing variable pay opportunities within their existing Policy limits. On this basis, the 2024 AGM season is likely to provide early indications of the evolution of the executive pay model in the UK, with the potential for a greater shift in 2025 as companies adopt a “wait and see” approach. See below for a summary of the key findings from our analysis. Please get in touch if you would like a copy of our report!
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European companies are working to close the pay gap with their U.S. counterparts. Investors are keeping a close watch. 👀 In 2022, CEOs at CAC 40 and FTSE 250-listed companies saw their compensation jump by 12%, attracting the attention of discerning shareholders. While support for “say on pay” proposals has dipped by roughly 1.7% from the previous four years, it’s still holding strong, averaging 92.3% in the first five months of 2024. This poses a unique challenge for European boards: attracting top talent while maintaining investor confidence. It’s a delicate balance – one that’s crucial for long-term success. #CorporateGovernance #ExecutiveCompensation #InvestorRelations #SayOnPay
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Tier 2 Senior Tech Support at Diligent 🚀 GRC SaaS Expert 🏆 Enhancing Modern Governance through Innovative Solutions
European companies are working to close the pay gap with their U.S. counterparts. Investors are keeping a close watch. 👀 In 2022, CEOs at CAC 40 and FTSE 250-listed companies saw their compensation jump by 12%, attracting the attention of discerning shareholders. While support for “say on pay” proposals has dipped by roughly 1.7% from the previous four years, it’s still holding strong, averaging 92.3% in the first five months of 2024. This poses a unique challenge for European boards: attracting top talent while maintaining investor confidence. It’s a delicate balance – one that’s crucial for long-term success. #CorporateGovernance #ExecutiveCompensation #InvestorRelations #SayOnPay
IN-DEPTH: European pay standards spark competitiveness concerns
diligent.com
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In our recent survey, Irish CFOs have maintained their optimism for 2024, with a majority expecting revenue and operating margin growth. Despite a lower expectation for headcount growth, Irish CFOs are more proactive in recruitment compared to their European counterparts (39% versus 34%).
CFO Survey Spring/Summer 2024 | Deloitte Ireland
deloitte.com
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An increasing number of companies are including individual performance metrics in their Annual Incentive Program, especially in the Real Estate and Financial Sectors. While this gives directors the opportunity to tailor compensation plans to the specific circumstances of their Named executive officers, it also means increased reliance on metrics that are subjective and not well understood by shareholders. In a recent paper, ISS-Corporate examined individual performance metrics within Annual Incentive Programs across 2,124 companies in the S&P 500 and Russell 3000 indexes to determine how often they are used and what their impact is on executive pay. We found wide variations between different industries and between larger and smaller companies. Notably, our research found that executives are more likely to meet their targets at companies that utilize IPMs and, on average, receive higher payouts. The results suggest that investors should carefully evaluate compensation programs that lack pre-set quantifiable metrics without ample disclosure. Go here to read the full article by ISS-Corporate’s Craig Benedict, Senior Associate, Compensation and Governance Advisory and Daniel King, Associate, Compensation and Governance Advisory: https://lnkd.in/g-PjPwan Find out more about our Executive Compensation Solutions here: https://lnkd.in/ek3HXfcb #ExecutivePay #CorporateGovernance #CEOpay
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