Fidelity threatens rebellion on executive pay

Fund management group Fidelity has declared war on excessive executive pay.

Fund management group Fidelity Worldwide Investment has attacked long-term incentive plans (LTIPs). With these, executives can cash in shares if they hit particular targets and hold the shares for a certain amount of time, typically three years. Fidelity wants them to hold them for five years.

It says this should reduce the temptation for executives to "maximise short-term financial performance" in order to get their hands on the share awards, and instead make them concentrate on promoting sustainable growth and long-term investment. Fidelity has threatened to vote against remuneration reports at firms that ignore this suggestion.

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