Hermes proposes CEO salary cap to combat remuneration concerns

Letter circulated among FTSE 350 bosses

Daniel Flynn
clock • 2 min read

Hermes Investment Management has reportedly proposed Britain's largest companies should cap the salaries of chief executives, following widespread concerns over excessive pay.

According to Sky News, the firm has circulated a document among the chairs of FTSE 350 companies' remuneration committees, the first time a mainstream fund manager has made such a suggestion. Hermes, which is owned by the BT pension scheme, is understood to have drafted its proposals in recent weeks with a final document expected in the next month. The document reportedly proposes that firms publish the figure above which a chief executive's pay would not rise, with the sum then discussed with investors. Quick-fire interview with Hermes' Saker Nusseibeh: Industry is bifurcating int...

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