Could greater boardroom pension transparency cut commercial disputes?

Published on 16 Jun 2010 under category: legal

The National Association of Pension Fund (NAPF) is calling for greater transparency with regards to executive pensions, which could reduce the number of commercial disputes being lodged.

Together with the Local Authority Pension Fund Forum the body is writing to the chairmen of every company in the FTSE 350 urging them to provide more information about boardroom pension benefits to shareholders.

In their correspondence, the two bodies warn that a lack of transparency in this area means that some senior executives may be rewarded in retirement for poor performance on the job.

This could lead to discontent among investors and bring about commercial disputes if shareholders feel they have not been fully informed.

NAPF chief executive Joanne Segars said: "There should be no reward for failure and pensions must be scrutinised as a key part of the overall pay package."

She added: "Pensions are not usually linked to performance and so must not become a back door to increasing directors' pay."

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