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Committee calls for end to long term incentive plans

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The House of Commons business, energy and industrial strategy committee has called for businesses to simplify the structure of executive pay and put an end to long term incentive plans (LTIPs), which ‘lack transparency’ and ‘distort decision making’.

The House of Commons business, energy and industrial strategy committee has called for businesses to simplify the structure of executive pay and put an end to long term incentive plans (LTIPs), which ‘lack transparency’ and ‘distort decision making’. No new LTIPs should be agreed from the start of 2018 and existing agreements should not be renewed, said the committee in its report on corporate governance, published on 5 April.

In place of LTIPs, the report recommends that deferred stock should be established as best practice in terms of incentivising long term decision making. See http://bit.ly/2n9RiUr.

Issue: 1351
Categories: News
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