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Executive Remuneration Working Group

Tuesday 8 September 2015

The Investment Association, which represents the UK's £5.5 trillion investment management industry, has announced the creation of a working group, the Executive Remuneration Working Group, to bring forward proposals for a radical simplification of executive pay.

Concern has been mounting in the investment industry, on company boards and with executives themselves that pay structures are becoming too complex, leading to a lack of clear incentives for company management to act in the best long term interests of the companies themselves and their investors.

The Investment Association's Executive Remuneration Working Group brings together senior representatives from the investment community and the corporate world to address the issue.

The Executive Remuneration Working Group includes:

  • Russell King, Remuneration Committee Chairman, Aggreko PLC and Spectris PL
  • Helena Morrissey, Chief Executive, Newton Investment Management and Chair, The Investment Association
  • Edmund Truell, Chairman, Strategic Advisory Board of Lancashire and London Pensions Partnership
  • David Tyler, Chairman, J Sainsbury PLC
  • Nigel Wilson, Group Chief Executive, Legal & General Group PLC
  • Daniel Godfrey, Chief Executive, The Investment Association

Daniel Godfrey, Chief Executive of the Investment Association said:

"Complex pay structures can make it difficult for investors and the wider community to judge whether high rewards are being earned for exceptional management performance or mediocre performance flattered by favourable external factors. This is an increasing source of reputational damage to business and of concern to investment managers.

"Simplification will help our members in their engagement with companies with the objective of supporting strategies and incentives that lead to long term, sustainable wealth creation for the benefit of our clients, the companies themselves and the economy."

The Working Group is expected to bring forward proposals in the spring of 2016.

Any interested parties who wish to contribute to the project can contact the secretariat, which is headed by Andrew Ninian, Director of Corporate Governance and Engagement, at: remunerationgroup@theinvestmentassociation.org

-ENDS-

For further information please contact:

The Investment Association

John Kenchington
Director of Communications
John.Kenchington@theinvestmentassociation.org
M +44 (0)7834 089 332

Navdeep Sidhu
Media Relations Manager
Navdeep.Sidhu@theinvestmentassociation.org
T +44 (0)20 7269 4663
M +44 (0)7843 517 618

Alex Hogan 
Press and Digital Media Officer
Alex.Hogan@theinvestmentassociation.org
T +44 (0)20 7269 4620 
M +44 (0)7508 724 066

Notes to Editors:

Russell King holds non-executive director roles at a number of leading British businesses including Aggreko PLC and Spectris PLC, on both of which he chairs the Remuneration Committee. Russell is also on the board of Sepura PLC, Hummingbird Resources PLC and Interserve PLC.

In addition to her role as Chief Executive of Newton Investment Management, Helena Morrissey is also Chair of the Investment Association. Helena has enjoyed success as a champion of women in the boardroom and founded the 30% Club in 2010.

Private equity veteran Edi Truell recently stepped down as Chairman of the London Pensions Fund Authority to become Chairman of the newly formed Strategic Advisory Board of Lancashire and London Pensions Partnership. Edmund is currently also Chief Executive of invoice finance firm Tungsten Corporation PLC and founded Duke Street Capital in 1998, and invests through his vehicle Disruptive Capital Finance.

In addition to chairing the board of J Sainsbury PLC, David Tyler is also Chairman of Hammerson PLC, a non-Executive Director at Burberry PLC, and has four decades' experience in senior financial and general management roles.

Nigel Wilson is Group Chief Executive of Legal & General after joining the firm as Group Chief Financial Officer.

About The Investment Association

  • The Investment Association is the trade body that represents UK investment managers, whose members collectively manage over £5.5 trillion on behalf of clients.
  • Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so that everyone prospers.
  • Our purpose is to ensure investment managers are in the best possible position to:
    • Build people's resilience to financial adversity
    • Help people achieve their financial aspirations
    • Enable people to maintain a decent standard of living as they grow older
    • Contribute to economic growth through the efficient allocation of capital
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks & shares ISAs.
  • The UK is the second largest investment management centre in the world, after the US and manages 37% of all the assets managed in Europe.
  • Our website includes an area for consumers which explains why it’s important to invest and how you can invest in a fund.