The shareholder voting guidelines issued by the Pension and Investment Research Consultants (PIRC) have been updated. These are relevant for listed companies establishing remuneration and employee share scheme policies and structures and for private companies aspiring to follow the best practice of their listed counterparts.

The changes include:

• More emphasis on the motivational aspects of pay arrangements and a statement to the effect that if a reward is structured in a manner which does not motivate directors, it should not be proposed to shareholders.

• If serious concerns are raised about remuneration policy or the remuneration report, PIRC will review the election of the Remuneration Committee Chair.

• The use of multiple remuneration consultants is discouraged.

• PIRC will not support differential pension contribution rates.

Further information on executive compensation issues can is provided here – Executive Incentives.