Asset managers urge restraint on executive pay during pandemic
Schroders and Hermes EOS warn boards that top executives must “share the pain” of the economic downturn, with pay “aligned with the experience of the wider workforce”.
Image: Chanida pp/Shutterstock
The Covid-19 pandemic has placed executive pay back on the agenda of asset managers and they in turn are issuing fresh warnings to boards. This week saw two investment managers make a point of highlighting the inappropriateness of high levels of executive pay during the current crisis.
Schroders came first. In a letter to UK companies, Schroders told boards that executives must “share the pain” of the economic downturn caused by the pandemic. The letter the firm would support companies in search of additional capital, but on condition of suspended dividends and an expectation that boards would “reconsider management’s remuneration
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