UK - Annual bonuses for executives lack disclosure and are often poorly linked to company performance, an academic study shows.
The study, carried out for the Economic & Social Research Council, found that two-thirds of the UK’s top 350 firms failed to inform shareholders of the full performance conditions attach-ed to short-term bonuses.
Under the combined code on corporate governance, companies only have to disclose conditions for long-term bonus schemes.
The study found that 98% of firms pay annual bonuses, with an average payout of £162,000. It showed that 54% of bonuses were paid in cash, with the rest a variety of cash and shares.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.