Skip to main content
Survey Report

Executive DC pensions: The impact of the Corporate Governance Code on pensions for senior executives

Pension Board and Trustee Consulting|Pensions Corporate Consulting|Retirement
N/A

August 31, 2019

Chapter two of the FTSE 350 DC Pension Survey 2019.

The recently introduced revisions to the UK Corporate Governance Code for listed companies makes specific recommendations in relation to Director’s pension provision. In particular, pension arrangements should be aligned with those in place for the wider workforce.

Around
45%
of FTSE 100 companies have reduced pension contributions.
Around
30%
of FTSE 250 companies have reduced pension contributions.

It would appear that the new Code is having the desired effect of aligning executive pension provision to that of the wider workforce.”

Gary Luck
Senior Director, Executive Compensation Team

A recent analysis of FTSE 100 companies indicates that 45% of companies have reduced pension contributions for their Directors. The corresponding figure for the FTSE 250 is 30%. In the FTSE 100, of those reducing contributions, 40% have done so for existing Directors and in the FTSE 250 this figure is 30%. Furthermore, looking at the companies that have reduced contributions for new hires, the median pension contribution has reduced to 10% of salary across the whole of the FTSE 350.

Further information about the implementation of the new Code, and other aspects of remuneration policies, contact us.

Next Chapter: The incorporation of ESG into investment strategies

Contact

Senior Director, Retirement

Contact Us