The Advisors' Blog

– Liz Dunshee

This article in “Proxy Insight” (pg. 3) by EY’s Rupal Patel in the UK proposes a new model for executive pay. Here’s an excerpt:

EY’s view is that this simplification agenda cannot be addressed by tweaking aspects of the traditional package. This is not about the number of performance measures used or the length of deferral applied. It is about acknowledging that a desire for simplification requires agreement on what is core to an executive pay strategy and to focus on that exclusively.

EY feels that many aspects of today’s pay structures, which have been viewed as integral to the traditional model, may not be the most efficient way to deliver remuneration or may simply be no longer relevant.

Speaking of the UK, this Manifest blog notes how BP simplified its pay policy in the wake of a failed say-on-pay vote in the UK last year…