The Local Authority Pension Fund Forum has published guidelines on its expectations for executive pay. The LAPFF represents 56 local authority pension funds with over £115 billion in assets.
The guidelines, which have been sent to FTSE 350 companies, set out 15 recommendations on four themes: structure and incentives, pay equity, executive recruitment, and consultation and decision-making.
In particular, the LAPFF strongly encourages remuneration committees at FTSE 350 companies to:
- set an incoming executive's total pay below that of the outgoing executive;
- phase out LTIPs;
- end the use of benchmarking to set executive pay;
- disclose the ratio between the average employee pay and average executive director pay; and
- publicly advertise all new executive positions.
The LAPFF guidelines are available on the LAPFF website.
Key contacts
Steve Bell
Managing Partner - Employment, Industrial Relations and Safety (Australia, Asia), Melbourne
Emma Rohsler
Regional Head of Practice (EMEA) - Employment Pensions and Incentives, Paris
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