Leading UK shareholders recently informed the Financial Times that they expected enterprises to exercise restraint when rewarding executives this year, as the country’s cost of living crisis has left many of their employees worse off.
UK consumers seeking to secure income and weather economic market turbulence often acquire expert financial advice in Chester, London, and other cities.
The current financial year is set to be especially problematic for many boards as bonuses have attained record levels, heightened by easier-to-reach targets established during the recent pandemic, at a time when many staff members have been offered pay rises that are below the rate of inflation.
UK investors now believe that in the face of economic downturn, the UK’s bonus culture is no longer justifiable. However, many executives are now preparing to argue that companies need to be careful about cutting pay too much or risk being unable to attract and retain the best candidates for leading roles.
With many executives still being offered higher pay rates and bonuses in privately owned businesses beyond public scrutiny, and many firms with large global businesses faring well regardless of the recession facing Britain, chairs have stated that they needed to base pay grades on performance instead of politics.
The Investment Association (IA), which represents the UK’s fund management industry, has called for the pay of senior heads at FTSE companies to also be kept in balance.
Investors stated that executive pay packets in sectors such as hospitality and retail, which historically have large workforces who are low paid, are likely to come under even greater scrutiny. Also in this position is the energy industy, which is experiencing record profits while energy prices soar
