Equity Culture

Tel: +44 (0)7956 691 104

  • Home
  • About Us
  • Board Evaluations
  • Regulatory Compliance
  • Clients and Case-Studies
  • Noticeboard
  • Blog
  • Contact Us

Aligning Directors pension contributions

5th February 2020 1 Comment

A FTSE SMALL CAP Group Counsel & Company Secretary writes...

Provision 38 of the UKCGC2018 says that pension contribution rates for executive directors “should be aligned with those available to the workforce”.

Is there any published guidance, or does anyone have a view on what “those [contribution rates] available to the workforce” actually means?

For example, my listed plc is the holding company of a group of 7 distinct UK businesses, each of which has its own remuneration and benefits structures, and as regards pension contribution (or payment in lieu) percentages by the employer, can vary across the c.1000 employees from (say) 4% to 15%.  The executive directors of the listed company have a contribution rate of 15%.  In very broad terms, the contribution percentage increases with “seniority” within the organisation’s management structure.  I think the executive directors’ percentages could be said to be “aligned” because they are no greater than the percentages available to the senior management amongst the workforce, with whom one could compare their roles.  However, if the comparator percentage is (say) the arithmetic mean of all the 1000 differing contribution percentages, then the executive directors’ contribution percentages are not “aligned”.

Any thoughts or guidance please on how this enigmatic phrase in the UKCGC is to be interpreted in practice?

Leave a Reply Cancel reply

Only your comment and indication of company type will be published

Comments

  1. FTSE100 said

    5th February 2020 at 4:39 pm

    If it is any help, the Institutional Voting Information Service (IVIS) published a position paper in September last year. The link to this document is: https://www.ivis.co.uk/media/13876/executive-pensions-for-2020-final.pdf

    Sections

    • Home
    • About Us
    • Board Evaluations
    • Regulatory Compliance
    • Clients and Case-Studies
    • Noticeboard
    • Blog
    • Contact Us

    Recent Notices

    • Providing copies of the Register of Members to external parties

      Providing copies of the Register of Members to external parties

      1st December 2022
    • Related Party Transactions

      Related Party Transactions

      21st September 2022
    • Should NEDs be required to hold shares in the company?

      Should NEDs be required to hold shares in the company?

      16th August 2022
    • Board Support Assistant

      Board Support Assistant

      11th July 2022
    • Interim Company Secretary Role

      Interim Company Secretary Role

      5th July 2022

    Contact EquityCulture

    Address:

    89 Kesteven Way,
    Corby,
    Northamptonshire
    NN18 8GF

    Registered in England and Wales No. 06008649.

    • Blog
    • UK Board Evaluations
    • UK Corporate Governance

    © 2023 EquityCulture | Site Designed & Built by Midland Tech