View all services

16 November 2017 • Articles

Ethical Boardroom

Remuneration practices in 2017

"Executive remuneration is increasingly perceived by stakeholders as a window into how the board sets the strategy and how it motivates management.
The say-on-pay votes have thus assumed greater importance. Remuneration policies and practices are required to be in line with the business strategy and not encourage risk-taking. The engagement between companies and investors is still a key driver for the development of sustainable remuneration practices and long-term value creation," has commented Fabio Bianconi, Director Morrow Sodali, on Ethical Boardroom.

"A cross-border analysis reveals increasing shareholder support towards management compensation, but issues do persist."

"While shareholder engagement on compensation resolutions has historically come into play during proxy campaigns only as a result of negative voting recommendations from proxy advisory firms, good disclosure and early communication with top holders should be set as a company’s strategy to demonstrate alignment with long-term shareholder interests and to mitigate future shareholder concerns."

Download the attachment below to read the entire short analysis.

Print
For further inquiries
Contact us
Contact us

Please complete this form to be contacted by a Morrow Sodali representative.