Members may recall that in 2016 the Investment Association Executive Remuneration Working Group recommended that companies be given greater flexibility to adopt alternatives to LTIPs, including deferred share awards, whether in the form of restricted stock or awards with pre-grant performance conditions. However, so far companies’ and investor’s experience with companies adopting alternatives has been mixed.
The Purposeful Company, whose aim is to “transform British business with purposeful companies committed to creating long-term value through serving the needs of society”, is now inviting companies and investors (NB not advisers) to participate in a new research project exploring experience of, and attitudes towards, the adoption of deferred shares as an alternative to the traditional LTIP. Survey results will be presented later this year only in aggregated form and in a manner that preserves the confidentiality of survey participants. The underlying data will only be available to The Purposeful Company project team.
The team has asked SPL to encourage its quoted clients to participate in this survey which can be accessed by clicking on this link https://lbs.eu.qualtrics.com/jfe/form/SV_37p9Xg2VbfKh6Jv
A description of the survey is also attached. A company is not restricted to one response – contributions are sought from a variety of roles at each company, eg Head of Reward, Co Sec, Rem Com chair. Each person can submit their own response.
The deadline for responses is quite tight – by 31 August 2019.
Members of the executive committee are also meeting the Purposeful Company shortly to discuss relevant points.
Any questions or comments on this should be directed to Nicholas Stretch at Nicholas.firstname.lastname@example.org.