IA reconfirms 2026 executive pay principles with refinements to implementation
The Investment Association (IA) has reconfirmed its flexible approach to executive remuneration in its Principles of Remuneration for 2026 and has identified five areas for improved implementation. The principles, representing views of investors managing £10trn in assets, maintain that companies can adapt pay structures to suit their business strategy when accompanied by suitable explanations. The IA specified refinements including requirements for more company-specific rationales, earlier benchmarking transparency, continued caution on hybrid schemes, retention of bonus deferral mechanisms even after shareholding guidelines are met, and restrictions on retrospective changes to in-flight awards except in exceptional circumstances with shareholder consultation. The approach to non-executive director remuneration remains unchanged, with performance-related pay deemed inappropriate for independent directors.