The Summit was unique in that it focused exclusively on FCA regulated firms and the particular challenges facing them in terms of balancing fixed and variable remuneration to reflect their culture and risk appetite. Chaired by Alexandra Beidas, Partner, Linklaters, this Summit focused on the latest priorities in relation to executive pay. Following the Edinburgh reforms, one of the issues at the top of the agenda is the removal of the cap on bankers’ bonuses. The Government’s aim in so doing was to enhance the attractiveness of London in the international labour market. However, will it also lead to a return to riskier decision-making? The Summit addressed how the changes to pay are being perceived by the Board, active shareholders, senior managers subject to the SMCR and RemCo  Chairs.

This Summit had been comprehensively revised and updated to take account of the shift in priorities in relation to executive pay. Top of the agenda was the relationship between executive pay and companies’ ESG record and disclosures, particularly in the context of climate change. Much of this was driven by increasingly active institutional investors who are scrutinising how pay is linked to companies’ social responsibility, including their commitment to diversity and inclusion. Other issues that were addressed included the impact of the FCA’s proposals for investment firms; the remuneration and reward proposals under the Fifth Capital Requirements Directive (CRDV), particularly in relation to material risk takers; the role of the Remuneration Committee in scrutinising executive reward strategies and the importance of culture in driving the right behaviours.