IA Remuneration Committee Chair Letter and 2023 Principles of Remuneration
On 9 November, the IA published its revised Principles of Remuneration for 2023, together with its letter to Remuneration Committee Chairs. The IA urges Remuneration Committees in 2023 to be mindful of the cost of living crisis and inflationary environment and encourages Remuneration Committees to exercise similar restraint and good practice displayed during the COVID pandemic in determining 2022 outcomes and remuneration approach for 2023. Any increase to variable pay opportunities in 2023 will need to be clearly explained in the context of the wider stakeholder experience. Shareholder engagement in 2023 will be critical.
Whilst little substantive change has been made to the Principles of Remuneration for 2023, RemCos should note the following:
If you would like to discuss any of these developments, please do not hesitate to get in touch with the usual members of your Baker McKenzie team.
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