UK - The pensions payments of executive directors must be considered in the context of their overall pay package, Baring Asset Management claims.
The fund manager has released “five basic policies” to help schemes gauge and monitor their invested companies’ performances.
Head of UK institutional business Jenny Segal explained: “We don’t simply look at gross payments.
“However, we believe that options and shares are important factors as they both seek to align remuneration with the economic interests of shareholders.”
BAM’s five-step policy on corporate remuneration is:
- Packages should be competitive to recruit and train talented staff.- Remuneration should be set in a clear and transparent manner.- Rewards should be aligned to shareholder interest – pay should be connected to performance and progress towards company targets should be key.- Pensions should be considered in context.- Share price performance should be considered relative to the company’s sector and the market.
Segal added: “Companies should have a clear and transparent policy, and when they don’t, we will take action and vote against proposals.”
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