Don’t use ‘boilerplate’ reasons to justify big executive pay rises, UK firms warned
The UK’s largest listed companies have been warned against using “boilerplate” arguments to justify big executive pay increases by an influential group of shareholders.The Investment Association (IA) – whose members manage £10tn of assets – has told pay committees to avoid “benchmarking”: where companies argue higher pay is needed in order to match rivals and avoid bosses jumping ship for larger salaries and bonuses elsewhere.The IA – whose members include Schroders, Legal & General and Aviva – used its annual letter to London-listed companies to say that the “use of benchmarking on its own to justify increases in remuneration is not appropriate, as it can lead to a ratchet effect in the market”.It stopped short of naming any individual company but said it expected “well-substantiated” rationales for pay rises from remuneration committees.“To date, members have observed that some rationale disclosures have not met this expectation, with remuneration committees using boilerplate and generic justifications, often citing ‘competitiveness against peers’ or the need to ‘attract and retain talent’ without any further supporting information,” the letter said.
“Where benchmarking suggests a large increase in pay purely to ‘catch up’ to a market percentile, remuneration committees should assess whether that is genuinely in shareholders’ interests and be prepared to explain reasoning beyond “market practice,”The IA added that – as the biggest 350 listed companies prepare their annual reports in the run-up to the spring shareholder meeting season – the most important factor was that they demonstrate a “strong link between pay and performance”,It comes despite a campaign to raise executive pay across the UK, with City firms such as the London Stock Exchange claiming it is harming competitiveness and curbing London listings,The stock exchange chief executive, Julia Hoggett, said last week that UK companies had become more “forceful” about rewarding top executives to compete with international rivals,“We are talking about being able to attract and make sure we can win in the war for talent so that our companies can have the best leadership to drive the best shareholder value,” she told the Financial Times’s Future of Asset Management Europe conference.
Hoggett’s boss, the London Stock Exchange Group CEO, David Schwimmer, saw his own pay jump to £7.9m in 2024 from £5.4m a year earlier.It came after investors approved an increase in his maximum pay levels from £6.25m to more than £13m, meaning he could take home that sum if he hit all the group’s internal targets.
Median pay for FTSE 100 chief executives jumped 11% to £6.5m last year, faster than the 7.5% rise for US bosses, where median pay is already much higher at $16m, according to data from the proxy adviser Institutional Shareholder Services.Andrew Speke, the interim director of the High Pay Centre thinktank, said the IA’s warning over benchmarking was “very welcome”.He said: “The value a CEO actually creates for their company, and how their pay aligns with the rest of the workforce, should be far more critical factors in determining how much they are paid.
”However, Speke said the IA’s warning would have limited impact.“Benchmarking is so deeply embedded across the FTSE 350 that the guidance may change how remuneration committees describe executive pay increases, without necessarily ending benchmarking in practice.”While investors’ willingness to challenge pay awards has strengthened in recent years, the thresholds for voting down pay packages and policies remain high.“Ultimately, because these votes are advisory, remuneration committees still have too much power to push ahead with unpopular pay policies regardless of investor concerns,” Speke said.“Strengthening investors’ ability to actually block inappropriate pay practices remains crucial if we want to see meaningful change.
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Roll up! Philip Khoury’s recipe for pistachio yule log | The sweet spot
This rich and moreish (and plant-based) yule log is a Lebanese Christmas favourite that harks back to the country’s French colonial pastI love a yule log, also known as a bûche de Noël. It’s a remnant from the time when Lebanon was a French colony, which lingers to the modern day, and is popular in Lebanese bakeries and patisseries over the Christmas period, often decorated with small figurines, plastic holly leaves and festive messages. Those decorations, and the trompe-l’oeil nature of this treat, enchanted me as a child, and I wanted to bring back some of that enchantment with this take on a woodland yule log.Prep 10 min Cook 3 hr 15 minChill 7 hr Serves 8–10For the chocolate chantilly mousse190ml plant-based milk, 100ml of it well chilled 120g dark chocolate (at least 65% cocoa solids), chopped For the chocolate ganache200ml plant-based milk, 100ml of it well chilled 50g muscovado sugar, or dark brown sugar150g dark chocolate (at least 65% cocoa solids), chopped For the pistachio praline200g shelled pistachios 100g icing sugar¼ tsp fine sea saltFor the aquafaba meringue mushrooms 75ml aquafaba¼ tsp cream of tartar150g caster sugarUnsweetened cocoa powder, for dustingMelted dark chocolate, for dipping For the pistachio sponge60g shelled pistachiosVegetable oil, for greasing 105g plain flour100g caster sugar¾ tsp baking powder¼ tsp bicarbonate of soda¼ tsp fine sea salt135ml soya milk¾ tsp vanilla extract1½ tsp apple cider vinegarTo decorate350g amarena cherries, or tinned cherries in syrup1 sprig dill Icing sugar, for dustingFor the mousse, heat 90ml milk in a saucepan on a medium heat until it reaches a gentle simmer. Meanwhile, put the chocolate in a heatproof bowl, pour in the hot milk and blend with a handheld blender until completely smooth
Ho, ho, Hamburg: bringing the flavours of a true German Christmas market home
From glühwein to lebkuchen, bratwurst to stollen, recreating the delicacies I sampled in the city’s festive markets is wholly achievable. Plus, a new digital cookbook for a good cause Sign up here for our weekly food newsletter, FeastWithout wanting to sound tediously Scrooge-like, the German-style markets that have become seasonal fixtures in many British cities over the last few decades never make me feel particularly festive. What’s remotely Christmassy – or German – about Dubai-chocolate churros and Korean fried chicken, I grumble as I drag the dog (who enjoys all such things) around their perimeters.Hamburg’s markets, however, which I was myself dragged around last weekend, are a very different story. For a start, the city has many of them, mainly fairly small – and some, such as the “erotic Christmas market” in St Pauli, with a particular theme
Christmas gift ideas for drinks lovers, from champagne to canned cocktails
Don’t get pulled in by silly gadgets: buy presents you’d be happy to receive yourselfThe Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.Alcohol is an unavoidable part of a festive spread (for more advice on which wines, beers and other drinks I like for each and every occasion, take a look at last week’s Christmas drinks guide), but, sometimes, a drink deserves a place under the tree as well as around it – especially if it’s an easy win for a drinks devotee for whom you need to buy a prezzie.The Guardian’s journalism is independent
Nine bring-a-plate ideas for Christmas drinks, barbecues and dinner parties this summer – recipes
Like nibblies, the concept of bringing a plate to a social event or a host’s home can be deeply confusing across cultures and generations. Are you carting canapes? Are you slinging salad? Are you delivering dessert? If we’ve learned anything from the tragedy of Romeo and Juliet, it’s that communication is key. So if you’re unsure about what your host expects, just ask.Below are nine summer-friendly recipes to suit various bring-a-plate scenarios: one-bite snacks that go with cocktails, salads to bring to barbecues and make-ahead dessert for dinner parties, arranged in each category from easiest to most ambitious.And if time is seriously short, you could throw together a pleasingly arranged antipasto-ish plate comprised of Guardian Australia’s top supermarket taste test products: crackers, feta, salami and pickles
How to use a spent tea bag to make a boozy, fruity treat – recipe | Waste not
Save a used teabag to flavour dried fruit, then just add whisky for a boozy festive treatA jar of tea-soaked prunes with a cheeky splash of whisky is the gift you never knew you needed. Sticky, sweet and complex, these boozy treats are wonderful spooned over rice pudding, porridge, yoghurt, ice-cream or even panna cotta.Don’t waste a fresh tea bag, though – enjoy a cuppa first, then use the spent one to infuse the prunes overnight. Earl grey adds fragrant, citrus notes, builders’ tea gives a malty depth, lapsang souchong brings smokiness, and chamomile or rooibos offer softer, floral tones. It’s also worth experimenting with other dried fruits beyond prunes: apricots, figs and/or dates all work beautifully, too
Christmas food gifts: Gurdeep Loyal’s recipes for Mexican-spiced brittle and savoury pinwheels
Edible Christmas gifts are a great excuse to get experimental with global flavours. For spice lovers, this moreish Mexican brittle, which is inspired by salsa macha (a delicious chilli-crunch), is sweet, salty, smoky, crunchy and has hints of anise. Then, for savoury lovers, some cheesy pinwheel cookies enlivened with XO sauce. XO is a deeply umami condiment from Hong Kong made from dried seafood, salty ham, chilli and spices. Paired with tangy manchego, it adds a funky kick to these crumbly biscuits
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