UK Board Remuneration Handbook 2022
The executive rewards and governance landscape is increasingly complex. Companies need effective reward programmes to attract key talent, motivate appropriate performance, and create an alignment with business imperatives and other talent strategies. At the same time, scrutiny abounds from shareholders, proxy advisors, governments, and the media. Organisations need to ensure that executive pay is robust, well-articulated and aligned with performance and appropriate risk management.
Mercer Executive Reward consultants are trusted advisors to listed and unlisted companies, not-for-profit, governmental and professional organisations advising senior management, remuneration committees, boards of directors and private equity houses. Our professionals provide best-in-class expertise in the areas of executive and director remuneration and benefits, pay-performance alignment, and corporate governance to meet the unique challenges facing our clients.
Attracting, engaging and retaining senior executives in a competitive talent market is a challenge for many organisations. We partner with clients to design incentives that are motivating and appropriate for their particular market. This means tailoring incentives to strategy, culture and operating model, and the wider employment value proposition. It also means creating models to ensure outcomes are defensible in a wide range of performance outcomes. The plans we design need to take into account the market context, affordability and the expectations of shareholders, regulators and other stakeholders.
Mercer acquired Kepler associates in 2015. The acquisition enabled us to combine Kepler’s skills in Executive Reward with Mercer’s global capabilities. We focus on providing high-quality tailored and independent advice on remuneration. Our approach is to develop a deep understanding of each client’s business and then help ensure the reward strategy supports the needs of the business and reinforces success. Companies that select Mercer see the way they remunerate their executives and staff as a potential source of competitive advantage.
We have strong capabilities in design of pay, including incentive design, performance measurement, target-setting, reward policy development, pay benchmarking, pensions and benefits and tax/accounting/legal issues. We offer strong support around remuneration governance, pay disclosure, shareholder engagement and consultation, and implementation/communication support. We have an excellent track record of helping clients obtain shareholder approval for their executive reward arrangements.
Mercer has Mercer’s extensive databases at its disposal – these are international and cover executive pay in the UK listed environment, specialist sector surveys and international data from our range of surveys. This grounds our advice in data sources and ensures our clients have a reasoned approach for their remuneration strategy.
We work on joint projects with our international colleagues on a daily basis and have a strong, cohesive international team. We have a extensive experience of providing international executive compensation advice which is sensitive to local markets, supports investor objectives and is based on the global group strategy.
We will look at business-as-usual trends and consider the immediate and medium-term implications emerging from the recent explosion in IPOs and SPAC transactions.
In this webinar we discuss in depth, articles of interest featured in recent editions of “It’s Our Business”, newspad of the Esop Centre.
We have gathered insights from major investors to determine their thinking behind the latest updates to voting guidelines.
UK and European Practice Leader
Peter has over 20 years’ experience advising the remuneration committees and management teams of major companies on executive remuneration matters. His particular focus is on the specific tailoring of remuneration to a business strategy, culture, and talent environment.
Gordon has over 30 years’ experience advising companies and Remuneration Committees on strategy, performance and reward. Gordon’s client experience includes advising the boards of around a third of the FTSE as well as numerous privately-held and overseas companies.
Richard has almost 20 years’ experience on the design and implementation of incentive plans both in the UK and internationally. As well as his executive remuneration consultancy expertise, Richard is a qualified solicitor and has in-depth knowledge of tax and legal aspects that may arise in the context of reward.
Ming-Lai has nine years’ experience advising remuneration committees and management teams of international companies spanning a broad range of sectors on all aspects of executive remuneration and global reward strategy, including incentive plan design, remuneration disclosure, and shareholder consultation support.
Nic has been advising UK and European companies and their remuneration committees on all aspects of executive pay for 25 years. His particular focus is on providing pragmatic, practical advice that ensures that each company’s remuneration policy supports their strategic goals and aligns with their culture and values.
Andrew is a Senior Principal based in Mercer’s London office. He has over 30 years’ experience in reward including around 20 years of advising Boards and management on all aspects of executive pay. He has advised a broad range of companies spanning FTSE30, mid-market, private equity backed and family-owned companies.
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