UK - Pension schemes and employers are split over government plans which will force companies to put executive pay deals to shareholders.
The Confederation of British Industry claims the directive – which has been issued by the Department of Trade and Industry and takes effect at the end of current parliamentary session – adds another unnecessary layer of legislation.
The directive will allow shareholders to vote on remuneration reports at company annual general meetings.
CBI spokesman Richard Dodd said the mandatory submission runs the risk of AGMs becoming unfocussed.
He added: “There is no need to give a separate vote on the remuneration package or policy. Shareholders have lots of ways to make their views clear. For example, they can consult in private with the board or at the AGM itself.”
The NAPF backs the directive – although it agrees that it adds to the “legislation burden”. It also believes it would have been far simpler to amend the existing Combined Code best practice guidelines.
The Institute of Directors said the government fell short in its directive as under the legislation, companies are not required to follow the outcome of executive pay votes.
The directive follows controversy surrounding high-profile company executives receiving excessive pay and bonuses despite shareholder disapproval.
This week's edition of Professional Pensions is out now.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.