The Investment Association (IA) has introduced new pay guidelines allowing shareholders greater flexibility to reward FTSE chief executives with higher salaries, amid concerns of a talent drain to the US. This shift marks a significant change in the City, following years of shareholder pushback against excessive pay. The IA’s guidelines, which are “principles, not rules,” aim to link pay to performance and long-term business health. The new guidelines are expected to reduce shareholder revolts and enhance London’s competitiveness in attracting top talent.
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