Executive pay in 2025: Navigating policy, performance, and perception
- Zenvest Partners
- Jan 6
- 1 min read
Executive pay has once again moved to the forefront of corporate governance debates in 2025, driven by regulatory developments, shareholder activism and rising expectations around fairness, transparency and long-term value creation. In Executive Pay in 2025, Ilkay Sarpdag examines how these pressures are reshaping remuneration frameworks and what boards and remuneration committees must prioritise in the year ahead.
Drawing on insights from the 2025 AGM season and the broader governance landscape, the article explores how executive compensation is being scrutinised not only for quantum, but for its credibility and alignment with strategy. Investors and proxy advisers are increasingly focused on whether pay outcomes genuinely reflect performance, resilience and sustainable growth — particularly in a period marked by economic uncertainty and ongoing social sensitivity around income disparity.
The analysis considers how organisations are adapting pay structures across fixed and variable elements, including incentives linked to long-term performance, strategic delivery and broader stakeholder outcomes. It highlights the growing importance of clear disclosure, disciplined decision-making and proactive engagement with shareholders to ensure remuneration policies remain defensible and trusted.
Looking ahead, the article argues that executive pay continues to act as a litmus test for governance quality. Boards that fail to align reward with purpose and performance risk reputational damage and investor pushback, while those that strike the right balance can reinforce confidence and support long-term value creation.
To read the full analysis and explore what executive pay in 2025 means for boards, investors and governance professionals, access the complete article on the International Accounting Bulletin here:
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