30 Jun 2010 “Debt, austerity and top management remuneration”, AIAF Nr.75, June 2010

The article “Debt, Austerity and Top Management remuneration” (original title: “Il Debito, l’Austerity e le remunerazioni dei Top Manager“) by Piero Marchettini Managing Partner di Adelaide Consulting, and Daniela Carosio, SVI Senior Partner, was published in the AIAF online review Nr. 75 as of June 2010 .

KEY INSIGHTS

To face the financial and economic crisis of European Countries, austerity policies might last several years. Big companies and remuneration committees will be asked to rethink the pay scheme of senior managers, by introducing coherent and transparent policies. The main issues concern the balance between fix and variable remuneration of top managers and the introduction of medium-long-term system of incentives. The authors discuss the contribution of institutional investors through active shareholding and analyze the possibility to use ESG indicators to measure bonus performance.

An explicative vademecum is also proposed concerning executive compensation, addressed to shareholders and institutional investors, but also to remuneration committees of listed companies.

To find out more, read the full article on the AIAF review.