One in five executive directors in FTSE 350 companies received no salary increase in 2016, ‘which is the lowest level of pay freezes in the last four years’, according to a new report by KPMG.
KPMG says:
'Despite companies' continued restraint in 2016, annual bonus and long-term incentive payments remain at high levels. While there have been no regulatory changes in 2016, we have seen more interested parties entering the boardroom pay debate. The interesting point to note is that while there are many voices agreeing something is wrong, the view as to what needs to be done differently is more fragmented. There is no clear solution or change being put forward which will “solve” the problem.
'Any pay approaches considered within remuneration committees should be based on full information and evidence, explained in a transparent fashion which clearly demonstrates the business rationale. It is unlikely the media interest will die down, but both companies and their shareholders agree, that no further regulatory intervention is required.’