UK asset management body the Investment Association has set up a working group to accelerate proposals around executive pay in the industry.
The Executive Remuneration Working Group will address mounting concern that pay structures have become too complex, leading to a lack of clear incentives.
Some fear this could lead to senior staff acting a way that is not in the best long-term interest of both the asset manager itself and its investors.
Danie Godfrey, chief executive of the Investment Association and a member of the working group, said: "Complex pay structures can make it difficult for investors and the wider community to judge whether high rewards are being earned for exceptional management performance or mediocre performance flattered by favourable external factors. This is an increasing source of reputational damage to business and of concern to investment managers.”
The working group intends to bring new proposals forward on executive pay in spring 2016 and has asked those who wish to contribute to the project to contact Andrew Ninian, director of corporate governance and engagement at the Investment Association.