Video tutorial: 2017 AGM season - challenges in executive and senior executive remuneration

Managing executive and senior executive remuneration can be a complicated task so what will shareholder pressures mean for your exec reward strategies in the next 12 months and how do you manage shareholder expectations? That was the subject of a 2017 AGM season panel discussion at the REBA Reward Leaders' Forum.

Watch the 2017 AGM season 'challenges in executive and senior executive remuneration' session in full

Stefan Stern, director at High Pay Centre; Philip Hutchinson, former head of global reward at Aker Solutions; Corinne Carr, independent reward practitioner; Rob Horrocks, group compensation and benefits director at Merlin Entertainments and Andrew Ninian, director, corporate governance and engagement at The Investment Association came together with REBA director Debi O’Donovan to debate the key issues.

“There are three things top of investors’ minds,” said Ninian. “That is what is the level of pay , what is pay for performance and what are the structures of pay? It's clear this year investors are taking a strong view on increases in pay. We will see some results where companies have been proposing increases and get quite a negative reaction from investors,” he said. Meanwhile he said the issue of pay for performance was not going to go away.

“It’s quite clear that the momentum and the desire for change is increasing,” said Hutchinson. “We need to rethink the way we manage executive reward so you can take constant change in your stride,” he said.

Hutchinson said companies needed to understand who to consult with – especially thanks to the growing influence of a number of organsiations as to how shareholders vote.

“The remuneration committees need to take a wider role and have a much more proactive place in terms of managing stakeholders. This means reward professionals need to engage with this much more,” said Hutchinson.

The panel also discussed the direction of travel for long term incentive plans (Ltips) as well as current practice and expectation in deferred bonuses.

This video tutorial was filmed at the REBA Reward Leaders' Forum which took place on 27 April 2017.