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23 February 2013

Hermes EOS & NAPF - Pay Principles


The NAPF and Hermes Equity Ownership Services, with BT Pension Scheme, RPMI Railpen and USS Investment Management, have published a discussion document setting out guidance on executive remuneration.

The report sets out four principles to encourage companies to change their reward structures as they begin to think ahead to the introduction of the binding vote on remuneration policy next year. This is the next stage of a vital conversation with the business world about how it can rethink its approach to boardroom pay.

"We have become increasingly concerned by the complexity of many pay deals and have for some time urged for restraint, transparency and simplicity in executive pay. We thus believe change is needed and it is encouraging that many companies agree."

The objective is to discuss the four principles with remuneration committee chairs and shareowner representatives over the coming months to refine this document so that it offers an authoritative guide on companies’ pay practices and helps shareholders to assess them.

Press release

Full statement



© National Association of Pension Funds


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