"Guidelines not rules" - our take on the Investment Association updated Principles of Remuneration

On 8 October, the Investment Association (IA) published its updated Principles of Remuneration (the Principles) following the review announced in February 2024. The overarching goal of the new revised Principles is to provide companies with greater flexibility over their remuneration arrangements – a change that is reflective of feedback provided by industry leaders that previous versions of the Principles were too prescriptive and rigid.

The changes made to the Principles include a structural change – the Principles are now divided into two parts, principles and guidance, in an effort to emphasize that they are “guidelines not rules”. The IA have also included an acknowledgement of jurisdictional differences in determining remuneration and a reiteration for expectations for shareholder consultation, amongst other significant updates. 

Click here to see our briefing on the updated Principles, which covers the key changes made by the IA to the Principles and their significance for companies. If you would like to discuss in further detail any of the points raised in the briefing, please get in touch with your usual Freshfields contact or any of the contacts in the briefing.