News
As we all know remuneration has been a major talking point already in 2012. But to what extent is it an IR issue? To find out, we conducted a mini-survey with IRO members and asked them the following questions:
With remuneration currently a hot topic, and following the government’s recent proposals to give shareholders more powers to veto executive pay packages, how do your (as IRO) discussions with investors about executive remuneration compare to one year ago?:
Cleary more engaged now
Somewhat more engaged
About the same level of interest/engagement
Somewhat less frequent
Clearly less frequent
Do you think that IR is going to be involved in discussions with investors about executive remuneration?:
Yes
No
The answers have been revealing:
· By a large margin our IRO members think IR will become more involved in discussions with investors over exec rem (77% vs 23%).
· As is stands currently the largest single response to the question of whether IROs are more or less engaged over rem than a year ago is ‘about the same’ - 58%. However 37% are either ‘clearly or somewhat more engaged’ than one year ago. Only 4% said this was not an issue for IR and no one so far has said they are less engaged now.
From these answers it would appear that on the subject of remuneration IR will be/already is much more engaged with investors. We will monitor developments on this subject in members' interest and report on where there are direct IR implications.
Published: 9 February, 2012