The Local Authority Pension Fund Forum has published guidelines on its expectations for executive pay. The LAPFF represents 56 local authority pension funds with over £115 billion in assets.
The guidelines, which have been sent to FTSE 350 companies, set out 15 recommendations on four themes: structure and incentives, pay equity, executive recruitment, and consultation and decision-making.
In particular, the LAPFF strongly encourages remuneration committees at FTSE 350 companies to:
- set an incoming executive's total pay below that of the outgoing executive;
- phase out LTIPs;
- end the use of benchmarking to set executive pay;
- disclose the ratio between the average employee pay and average executive director pay; and
- publicly advertise all new executive positions.
The LAPFF guidelines are available on the LAPFF website.
Key contacts
Samantha Brown
Managing Partner, Employment, Pensions and Incentives, UK and EMEA, London
Steve Bell
Managing Partner, Employment, Industrial Relations and Safety, Asia and Australia, Melbourne
Emma Rohsler
Partner, Head of Employment, Pensions and Incentives, EMEA, Paris
Tim Leaver
Partner, London
Andrew Taggart
Partner, London
Fatim Jumabhoy
Partner, Head of Employment & Workplace Investigations, Asia, Singapore
Barbara Roth
Partner, New York
Christine Young
Partner, London
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