We provide a wide ranging guide on executive remuneration practices in AIM listed companies.
Since we last published this report in 2016, scrutiny of executive pay has intensified even further. Having said that, the AIM market largely remains out of the public eye. This is in spite of the fact remuneration levels at the upper end of the market are not dissimilar to those found among comparable-sized businesses in the main market.
Whilst the regulations in relation to the disclosure and voting requirements for executive pay are much less prescriptive than for companies with a main market listing, we have seen a growing number of AIM listed companies begin to closely follow best practice - in line with main market requirements. Other findings from our report include:
Regulatory: 42% of the Top 50 AIM companies have chosen to adopt the UK Corporate Governance Code although more generally, adoption of the Quoted Companies Alliance (QCA) Guidelines is more commonplace.
Total remuneration: Just over one third of a Chief Executives total remuneration in AIM companies comprises variable pay compared with just over 20% when we last published our analysis in 2016.
Annual incentives: The typical annual bonus opportunity for AIM directors is 100% of salary. Almost a third of companies have paid a bonus in the range of 80% to 100% of the maximum bonus opportunity.
Long term incentives: A performance share plan is the most common form of long-term incentive, although ‘one-size’ does definitely not fit all when it comes to designing incentive plans for AIM companies.
Non-executive directors: Around a half of AIM companies increased non-executive director fees for the period under review.
Diversity: Across the executive director population in this survey group only 7% are currently women suggesting the AIM market has a long way to go to address gender diversity.
In order to provide a guide for companies and remuneration committees, this report provides data on basic pay and incentives. We also consider the governance environment, particularly in light of recent changes to regulations and the wider factors that impact the executive pay landscape.
Download the full report “Executive remuneration in AIM listed companies” for more information.
Event: Remuneration Forum
We will be presenting the key findings from our guide and discussing the corporate governance issues facing small and medium sized listed companies in our Remuneration Forum on Friday 21 June 2019 in London.
We will also be joined by Tim Ward, CEO of the Quoted Companies Alliance, the independent membership organisation championing the interests of small to mid-size quoted companies. Tim will be sharing his insights into corporate governance in AIM listed companies.