Chairman of Weir Group’s remuneration committee writes of the need for chief executives to lead the way on executive pay reform.
The introduction of long-term share-based incentives for executives at Weir Group, one of the UK's largest engineering outfits, "could be a model for other companies", according to the chairman of the group's remuneration committee.
Writing in the Financial Times, Clare Chapman describes how Weir reformed the remuneration policy so executives are given shares that pay out over seven years, minus the three-year performance conditions included in many long-term incentive plans (LTIPs). The article comes after a shareholder vote this week backed pay changes at Weir.
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Guidance from the US financial watchdog widens the use of a rule which allows companies to exclude shareholder proposals, potentially making it easier for companies to resist votes on social or ethical grounds.
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