Companies listed on the AIM market are changing their executive pay structures to be more in line with the FTSE350.
Companies listed on the AIM market are changing their executive pay structures to be more in line with the FTSE350, according to KPMG’s latest guide to executive remuneration in AIM listed companies.
The shift is in part due to institutional shareholders increasingly expecting AIM companies to demonstrate higher governance standards as well as the 2018 AIM changes under which companies are required to state which corporate governance code they are applying.
The guide includes an overview of salary, bonus and long-term incentives across the executive population, alongside other current issues affecting remuneration. For the first time, the guide shines a light on gender diversity in board level positions in AIM listed companies.
Additional findings since the last survey in 2016 show the following:
Chris Barnes, Partner and UK Head of Reward at KPMG, said: “Although the AIM market generally remains less in the public eye and regulations are less prescriptive compared to the main market, we are seeing a shift in more AIM companies adopting best practice when it comes to executive pay. This will only continue as institutional investors expect higher governance standards and as companies conform to recent changes to AIM rules in 2018.
“Against this backdrop remuneration levels at the upper end of the market are not dissimilar to those found among comparable sized businesses in the main market. Further the focus on gender diversity in board level positions also shows that AIM companies have a long way to go to even match levels found in the main market.
“On the whole, while there is a clear direction of travel towards AIM companies adopting practices more associated with main market companies, it should be remembered that there is a wide variety of companies listed on AIM both in terms of their size and shareholder base. This means that one size does definitely not fit all when it comes to executive remuneration.”
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