For the fourth year running, we have researched the remuneration of directors of AIM listed companies and in 2019 the debate continues under the umbrella of a new regulatory agenda. This edition examines how AIM 100 companies are responding to the greater levels of transparency being demanded of listed companies by shareholders, regulators, and the public-at-large.
The majority of recent governance reviews were prompted in the first instance in order to try to avert future corporate failures, such as those witnessed in recent years. The increase in reporting standards have been associated with higher levels of transparency and accountability, as a result, it may not be surprising to find that many AIM 100 companies have voluntarily chosen to apply more stringent rules in their own reporting.
Corporate governance changes will mean that many roles may need to adapt to the changing requirements. For example NEDs, along with other board members, may see their time commitments increase with the need for higher levels of reporting and/or committee oversight. This means that remuneration will also need to be adjusted according to different expectations and, potentially, levels of responsibility.
CEO median total remuneration for AIM listed companies is £324,000 which is 30% higher than the equivalent figure for 2014. For FDs/CFOs, the median salary for the latest year is £208,000.
This figure marks an 18% increase from five years ago when the median salary was £175,500.
The percentage of individuals receiving a bonus has been quite steady over the past two years. For both CEOs and FDs/CFOs, just over 70% of executives have bonus elements included in their remuneration.
There remains significant room for improvement when it comes to gender diversity on the boards of listed companies and the AIM 100 is no exception. The average number of female executives is fewer than one per company included in the sample. Only 22 of the AIM 100 companies have more than two female executives.
Although this report can only provide a snapshot of executive remuneration at a single point in time, it is a useful benchmarking resource to allow you to compare your remuneration and that of your directors and your peers.
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AIM Directors' Remuneration Report 2018
AIM Directors' Remuneration Report 2017