The ABI has welcomed the introduction of a new international accounting standard for share-based remuneration announced by the International Accounting Standards Board.
ABI head of investment affairs Peter Montagnon says: “Share-based remuneration is not a free lunch. It involves substantial cost, and investors firmly believe that it should be charged to profits. We congratulate Sir David Tweedie and the International Accounting Standards Board for developing this standard. It will lead to better understanding among both companies and investors. In turn that will help everybody ensure that remuneration is properly linked to performance.
“The introduction of an international accounting standard marks a significant step towards creating a disciplined and level playing field for executive remuneration. We will be taking account of the new standard when we next review our remuneration guidelines”.