Could negative bonuses be the future of variable pay for executives? Have a discussion about pay, and in particular executive pay, and invariably someone will raise the idea of “negative bonuses”. The concept is simple, if bonuses are meant to be a reward for delivering a performance that is above and beyond what is expected,…

June 25, 2019 Read more >

Annual Returns for Share Schemes – deadline 6 July 2019 For the tax year 2018/19, the deadline for filing the share schemes annual returns is 6 July 2019.  The filing obligation applies in relation to any new share schemes implemented as well as existing share schemes. HMRC do not send out any reminders. As there…

June 25, 2019 Read more >

Update on the changes to the taxation of termination payments Background A series of reforms have been introduced to the taxation of termination payments from 6 April 2018 following technical consultation. Although the reforms started out as simplification measures, they now “clarify and tighten” the taxation of such payments. In other words, the legislative changes…

June 25, 2019 Read more >

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…

June 20, 2019 Read more >

Introduction Malus and clawback provisions in incentive plans were originally introduced for financial institutions, mainly in response to the financial crash in 2008.  However, they have now become common for LTIPs and executive bonuses in all sectors.  They originally applied in very limited circumstances, such as misstatement of financial results or gross misconduct by the…

June 20, 2019 Read more >

Top Dogs and Fat Cats This new book from the Institute of Economic Affairs was published on 8 May 2019. It is a collection of essays on executive pay, providing fascinating insights into the nature of high pay and making a compelling contribution to one of today’s most contentious issues. The book is edited by…

May 29, 2019 Read more >

The effect on NEDs of proposed reforms to IR35 Some non-executive directors (NEDs) also provide consulting services to the companies on whose boards they sit and to others. How will the proposed changes to IR35 affect the provision of those consulting services? HMRC published a consultation paper Off-payroll working rules from April 2020 on 5 …

May 29, 2019 Read more >

FRC publishes a guide on financial reporting for smaller listed and AIM companies The Financial Reporting Council (FRC) together with the Chartered Institute of Accountants have recently published a guide to help improve financial reporting within smaller listed and AIM quoted companies. It is specifically aimed as a guide for Audit Committee members and provides…

May 29, 2019 Read more >

Proxy advisers: proposed US regulations are misguided This is a summary of an article written by Robin Ferracone, CEO of Farient Advisors, MM&K’s US partner in the Global Governance and Executive Compensation Group (GECN). Proxy advisers, such as Institutional Shareholder Services (ISS), review company disclosures and provide cost-effective, independent research and voting recommendations to institutional…

May 29, 2019 Read more >

Creating successful bonus structures – five things to think about Whether you think in these terms or not, the way a company sets up, manages and then settles its bonus plans will have a direct impact on the behaviour of people within the organisation. Here are five thinking points in respect of creating successful bonus…

May 29, 2019 Read more >

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…

May 22, 2019 Read more >

This month MM&K Launched its 24th annual Compensation Survey for the European Private Equity and Venture Capital Industry.  The 2019 Survey will provide participants with information on both quantum and structure in respect of salary, bonus plans, carried interest plans and co-investment plans. Through participation in our survey, participants will obtain data which allows them…

April 29, 2019 Read more >