What's new?

New Perspective article: Executive pay regulation: the potential impacts of proposed European reforms 

The political impetus to regulate executive pay has accelerated in Europe. Recent regulatory developments that would give shareholders greater oversight of executive pay and cap bonuses in the financial services sector, reflect a hardening of attitudes among European politicians and the public. In an era of low or nonexistent economic growth, consumer price inflation, and falling average real wages, executive remuneration will continue to be a sensitive issue.

 Download article 

European Executive Remuneration trends – overview of the MERG snapshot survey - Join our live webcast on 26 June 2013 at 2:00 PM BST
During the webcast, we will present the highlights of the last MERG pulse survey results run in April 2013 and published in June 2013.

 Register now! 

In light of escalating pay levels and an increased focus on executive pay practices, shareholders in Europe are demanding more comprehensive information on the pay levels, compensation package designs, and performance assessments for key executives. The Perspective provides an overview of the European Corporate Governance Forum’s recommendations on disclosure, the current disclosure practices across Europe, and the steps necessary to become disclosure-ready.

 Download article 

EU reaches 'provisional agreement' on restricting bankers' bonus pay

The European Parliament and European Council have negotiated a "provisional agreement" on bonus limits for bankers as part of EU proposals for amending capital requirements for banks. The ceiling would be equal to one's annual salary, with provisions for doubling subject to shareholders' approval, well above simple majority. Details have yet to be determined, but a portion of the bonus may be paid in long-term deferred instruments, which may be discounted in how they are counted in the cap.

 Read more 

Corporate bonus pools in financial services expected to be relatively flat for 2012 performance relative to 2011 - 21 February, 2013

In 2013, executives in the global financial services sector are anticipating base salary increases of 2.2-2.5% according to new data released by Mercer. Regionally, excluding those who are expected to have pay freezes, executives in the emerging markets are expected to receive the highest salary increases in 2013 of between 4-5%, followed by North America at 3% and then executives in Europe.

 Read press release 

• Ensuring that executive pay is commensurate with performance and that reward programmes are driving value creating performance 

• Making certain that executive remuneration programmes and processes adhere to the changing norms of governance best practices and are above reproach 

• Attracting and retaining key executives in a competitive market for talent 

• Managing return (performance and value creation) on investments (costs, including dilution)

• Ensuring total remuneration programmes support the business and human capital strategies 

• access our regular European Executive Remuneration Perspective newsletter,

• obtain information on Mercer's Executive Remuneration consulting services and survey capabilities, 

• contact our network of Executive Remuneration consultants in Europe.