UK - Corporate governance groups have vowed to fight any executive pension awards they feel are excessive, ahead of the coming proxy voting season.
The move follows the proposed £1.4m cap on tax relief for an individual’s pensions pot in the government’s Green Paper.
Any additional contributions will be taxed at 60%, compared to the present higher income tax rate of 40%.
Pensions Investment Research Consultants research director Stuart Bell said corporate governance groups will be paying particular attention to directors’ pensions as the topic has become a “hot button issue” for them.
And Isis Asset Management corporate governance director Richard Singleton said: “This is an area which is used, and on occasion, abused in terms of remuneration.
“If an award is excessive, we would vote against it.”
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