LONDON (Reuters) – Nearly a third of the companies in Britain’s FTSE 100 index of blue chip firms have agreed to cut pension payments for executives, the Investment Association said on Wednesday, amid increasing scrutiny of the gap between bosses’ and ordinary workers’ pensions in Britain.
In February, the Investment Association, which represents big asset managers, said a company would be “red-topped” if it did not explicitly state that any new executive director would have pension contributions set in line with the majority of employees.
Top - Level - Companies - Shareholders - Concerns
A red top is the highest level of warning used for companies where shareholders should have the most serious concerns, though the Investment Association has no formal power over how investors vote on company policies.
The aim is to stop pensions being used as a mechanism for increasing total pay.
Total - FTSE - Companies - Changes - Result
A total of 30 FTSE 100 companies have made significant changes as a result of the campaign, the Investment Association said.
“Shareholders will continue to focus on bringing executive pensions in line with majority of the workforce over the next 12 months,” Chris Cummings, the Investment Association’s CEO, said in a statement.
Companies - Board
“Companies that do not take on board...
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