UK - The NAPF is calling for non-executive directors' pay to include shares to bring their interests closer to those of pension funds.
The recommendation comes in the NAPF's new guide to independent non-executives which will be unveiled at its annual conference in Brighton today.
Trade and industry secretary Patricia Hewitt has already described the guide as a “valuable contribution to the existing guidance in this field”.
The guide also recommends that any non-executives who hold a full-time directorship elsewhere should hand over the salary from their non-executive post to their full-time employer.
The NAPF says individuals should be limited to one non-executive post if they are already an executive elsewhere, while others should only hold a maximum of five non-executive positions.
In order to achieve a balance on company boards, the NAPF believes that a third of board members should be non-executives, of which at least three should be independent. This would enable non-executives to challenge and influence board decision-making.
The NAPF investment council hinted that the guide may be updated next year as it was prepared to “revisit” the document 12 months from now.
By Geoff Ho
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.