ABI warns on bonus payouts

THE Association of British Insurers (ABI) has warned the UK’s top 350 public firms against offering executive pay deals with unlimited bonuses.

An ABI letter sent to all FTSE 350 firms warns that its institutional voting information service (IVIS) would issue a “red top” alert on uncapped pay deals where there was no proof of exceptional circumstances.

Shareholders have become increasingly alarmed by new contracts, which appear to have no limit on bonuses, the ABI said.