United Kingdom: Executive Remuneration

The UK Financial Conduct Authority has published proposals for reforming the remuneration framework for UK solo-regulated firms, introducing greater flexibility and proportionality to how staff compensation is regulated in UK asset managers. The consultation, open until September 2026, presents coherent and proportionate reforms that could significantly impact remuneration regulation if adopted in final rules expected in Q1 2027.

This publication examines key developments from the 2026 AGM and reporting season, analyzing emerging trends in corporate governance, executive compensation, and climate-related disclosures. The analysis explores how UK companies are adapting to new regulatory requirements and responding to evolving shareholder expectations across governance practices.

Companies operating employee share plans and management incentive arrangements must prepare and submit annual returns to HMRC by 6 July 2026, with penalties starting at £100 for late filing.

The UK Government proposed legislative changes to streamline environmental compliance for housing developments, introducing Delivery Plans and a Nature Restoration Fund. These plans centralize environmental assessments, fund interventions, and simplify nutrient pollution considerations for developers.

At our annual conference with Linklaters we were delighted to welcome Andrew Ninian, Director of Stewardship, Risk and Tax at the Investment Association (IA)...

The Investment Association's updated "Principles of Remuneration" emphasize shareholder collaboration and long-term value creation, outlining flexible guidelines for executive pay, performance-linked bonuses, and shareholder engagement, while considering global competition and workforce alignment in setting pay standards.

HMRC has announced in Employment Related Securities Bulletin 47 that it will be introducing some changes to Employment Related Securities (ERS) annual filings templates from 6 April 2023.

On 9 November, the IA published its revised Principles of Remuneration for 2023, together with its letter to Remuneration Committee Chairs.

On 4 November 2022, Institutional Shareholder Services (ISS) published its 2023 benchmark policy consultation, seeking views on its proposed amended voting policies for 2023.