Hermes’s stewardship arm calls on companies to rein in pay levels.
FTSE 350 companies have been asked to curb soaring executive pay by investment manager Hermes. Reuters reports that Hans-Christoph Hirt, co-head of EOS, Hermes's stewardship arm, said the UK public has lost trust in the management of executive pay levels. "We want to see simpler packages, lower variable pay, much higher shareholding requirements and stronger accountability of remuneration committees," he said. His remarks come as Legal & General launched a paper detailing its concerns about executive pay levels and blaming benchmarking for creating an "arms race" in boardroom remuneration levels.