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The Guardian - UK
The Guardian - UK
Business
Kalyeena Makortoff

Don’t use ‘boilerplate’ reasons to justify big executive pay rises, UK firms warned

A pedestrian carrying an umbrella in view of City of London skyline
Median pay for FTSE 100 chief executives jumped 11% to £6.5m last year, according to data from Institutional Shareholder Services. Photograph: Hollie Adams/Reuters

The UK’s largest listed companies have been warned against using “boilerplate” arguments to justify big executive pay increases by an influential group of shareholders.

The Investment Association (IA) – whose members manage £10tn of assets – has told pay committees to avoid “benchmarking”: where companies argue higher pay is needed in order to match rivals and avoid bosses jumping ship for larger salaries and bonuses elsewhere.

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