The Pensions and Lifetime Savings Association (“PLSA“) has published its 2023 Stewardship Guide and Voting Guidelines. The 2023 Guidelines set out the PLSA’s voting recommendations for AGMs in 2023, reflecting its views on current best practice.

There have been no material changes to the executive remuneration sections of the 2023 Guidelines and the PLSA continues to recommend that companies show restraint when setting executive pay in the context of the cost-of-living crisis. The PLSA also encourages investors to evaluate all aspects of a company’s remuneration policy to ensure it aligns with investors’ interests and wider workforce policies.

The 2023 Guidelines make it clear that the PLSA expects to see alignment between remuneration and wider sustainability targets. This comes following its statement in the 2022 Guidelines that the PLSA would “welcome” the consideration of ESG factors in determining remuneration outcomes (see our previous blog post here).

The 2023 Guidelines also set out that, following the results of the PLSA’s workforce reporting analysis, PLSA members would like reassurance that greater attention is being given to employees’ pay.