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The long-awaited IA Principles of Remuneration 2025 was published today.
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An excerpt of the covering letter is:
The publication of this year’s Principles follows a review conducted to ensure they support a competitive remuneration environment while meeting the wider expectations of investment managers, including their clients. The principles and guidelines have been simplified to reflect evolving practices in the market and the expectations of investors.
The updated Principles have three overarching principles, ensuring remuneration policies:
Promote long-term value creation through the delivery of the company’s strategy,
Support individual and company performance within the context of sustainable long-term financial health of the business and sound risk management,
Seek to deliver remuneration levels clearly linked to company performance.
It is important to note that the principles offer flexibility to adapt pay structures to best suit a company’s business and strategy. They are principles, not rules.
Investors will analyse the suitability of pay proposals on a case-by-case basis. It is crucial for remuneration committees to engage with their major shareholders to understand their views and provide clear explanations as to why the pay approach is right for their business, company strategy, and shareholders.
ENDS
The Investment Association has been in long and extensive consultation on remuneration with both its member firms and leading UK companies. The principles offer both companies and investors guidance on compensation best practice; and help inform the comply or explain decision.
The UK debate on top executive pay started by the “Big Tent” by the London Stock Exchange provides the backdrop to this latest news. The link to the COPRGRO post on this can be found HERE.
CORPGRO will provide a summary and comment on this important development shortly. For compensation advice or comment contact:
+44 (0) 7989 337118
CORPGRO Helps Companies With:
Please feel free to email or call:
Damian Carnell - [email protected] +44 (0) 7989 337118
VA Bec Bostock - [email protected]
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