- June 20, 2019
MM&K partners with The London Stock Exchange, First Flight and Board Excellence in a seminar for AIM companies on directors’ pay, governance and board effectiveness
On 20 June, MM&K Chief Executive, Paul Norris made a presentation at The London Stock Exchange (LSE) to an audience of AIM companies and advisers on designing fit-for-purpose remuneration policies. He was joined by Naomi Scott-Mackie a consultant in First Flight (non-executive search) and Kieran Moynihan (Managing Partner in Board Excellence) to reinforce the message that developing and maintaining a successful remuneration policy requires an independent, robust and well-functioning Board, operating within a sound governance framework.
An effective Board and a sound governance framework are essential to the overall success of any business, but independent non-executive directors (NEDs) and good governance are particularly important in the context of executive remuneration. AIM companies are not “quoted companies” and so are not bound by the Companies Act strict remuneration disclosure requirements. As AIM companies are not listed on the main board of the LSE, the UK Corporate Governance Code does not bind them. However, AIM companies are required to adopt a corporate governance code (many adopt the QCA code) identify it on their web-site and explain how they have complied with its principles. Instances of non-compliance and the reasons for it, must also be identified.
Corporate governance is catching up with AIM but with a lighter touch than for quoted companies listed on the main board. In an environment of lighter regulation (in which AIM operates) it becomes even more important to demonstrate to investors and other stakeholders how the Board takes account of their interests and that the company is being run sustainably for the benefit of all its stakeholders. This includes developing a remuneration policy that is demonstrably fit-for-purpose because it is competitive, supports the business strategy and is affordable (taking account of the economics of the business and stakeholder requirements).
There are more than 1,400 AIM companies. Some of them are large corporations, which could (there are those who might say should) be listed on the main board. Many are early-stage, growing companies with large appetites for cash to fund their growth but few of the resources available to their larger peers. They all need good relations with their stakeholders. What amounts to fit-for-purpose remuneration for one AIM company will not necessarily be fit-for-purpose for another. Fortunately, flexibility exists to tailor a good result.
The seminar was well-attended and there was a lively discussion after the three presentations concluded. It is clear that this combination of complementary presentations struck a number of chords with the audience. MM&K is pleased to have participated in this event in partnership with the LSE, First Flight and Board Excellence and looks forward to repeating the experience. The seminar slides are available here.
MM & K Limited advises extensively among AIM companies. For more information about executive remuneration, please contact: Paul Norris
- May 22, 2019
MM&K’s Golf Day at Hankley Common
MM&K hosted its annual golf day on 21st May again at Hankley Common Golf Club in Surrey. We were pleased to have 22 clients and friends of MM&K come and join us to play a well contested four ball competition in the morning. Some hardy souls managed to play more golf in the afternoon after a well-earned and delicious three course lunch and drinks.
The weather was fantastic for golf, largely sunny with a light breeze. One client had the best round of golf he had ever played, going round in 76, five over par gross. Not surprisingly he was in the winning team.
Hankley Common is a wonderful (but not that well known) classic Surrey heathland course and it was in superb condition. One kind client remarked afterwards: “What a fabulous day – thank you all so much – The course was in great condition- a real privilege to play it”.
- April 20, 2019
2019 MM&K Private Equity / Venture Capital Breakfast Seminar
In early April, MM&K held a PE/VC Breakfast Seminar for the participants in its last three PE/VC Compensation Surveys. At the seminar the 2018 Landscape of the Private Equity / Venture Capital industry was discussed. We also discussed the outlook on what 2019 may hold for the industry.
Prior to the event, MM&K organised a 2019 Pulse Survey, that was sent out to all of the invitees to the seminar, to get a picture of the most up-to-date Remuneration and Staffing trends in the UK and European PE/VC industries. Also, some of the interesting insights and findings from the 2018 MM&K PE/VC Compensation Survey were presented to compare with the results of the 2019 Pulse Survey.
The event opened with a networking opportunity for all the attendees and closed with a vocal Q&A session.
2019 MM&K Private Equity / Venture Capital Pulse SurveyThis short Pulse Survey focuses on the most recent developments in the UK and European Private Equity / Venture Capital industry. The Pulse Survey is run for the benefit of MM&K’s PE/VC Compensation Survey participants, and provides them with an outlook on the most up-to-date trends in compensation and staffing levels in the PE/VC industry.
91% of participating houses indicated a salary increase across all of their professionals at their most recent review date. However, only 15% indicated increases in bonus levels for their investment professionals (over 2018).
About 70% of the participants indicated they focused on selected groups of staff when determining bonuses for last year’s performance. 86% of firms expect an increase in the number of investment professionals in 2019.
All in all, there remains perhaps a surprisingly high level of confidence in the industry, which is encouraging to see.
If you are working in a Private Equity / Infrastructure / Venture Capital House and you believe that your firm might like to participate, please contact Margarita Skripina or request your questionnaire here.
- February 26, 2019
MM&K recently held one of its regular Remuneration Dinners for CEOs and Non-Executive directors.
Please click here to read an overview of the evening in which the theme for discussion was: “Could Remuneration Committees take a more active approach to gaining the high ground on executive pay?
- June 12, 2018
Please click here for the notes from our 11 June 2018 MM&K Remuneration Dinner for Chairmen, CEO’s and Remuneration Committee Chairs.
The theme for discussion was: “Bonus plans and how to make them better”
- March 20, 2018
Please click here for the notes from our 19 March 2018 MM&K Remuneration Dinner for Chairmen, CEO’s and Remuneration Committee Chairs.
The theme for discussion was: “The Evolution of the Remuneration Committee, impact of proposed changes to the UK Corporate Governance Code”
- December 22, 2017
MM&K recently held one of its regular Remuneration Dinners for CEOs and Non-Executive directors. Please click here to read an overview of the evening in which the theme for discussion was: “The direction of travel of remuneration governance in the UK and what the regulatory environment might look like in 5 years’ time”.
- September 21, 2017
Damien Knight will be speaking at the ESOP centre British Isles symposium in London on 16th and 17th November. Damien will be delivering a paper called Top pay – the facts. More details can be found here http://www.esopcentre.com/wp-content/uploads/dlm_uploads/2017/07/BI-symposium-2017-brochure-9.pdf
- September 20, 2017
Stuart James, Associate Director will be speaking on “The future of executive pay and corporate governance for listed and private companies” at the ProShare conference on Tuesday, 3 October 2017. Click here to find out more and book a place http://proshare.libf.ac.uk/events/annual-conference-2017
- March 19, 2017
Please click here for the notes from our 29 June MM&K Remuneration Dinner for Chairmen, CEO’s and Remuneration Committee Chairs.