IMA welcomes plans to limit director bonuses

The Investment Management Association (IMA) has welcomed new measures announced by the government to improve accountability when it comes to excessive remuneration for executive directors.

According to business secretary Vince Cable, the government will require that companies publish more informative reports concerning executive pay, including a single figure for how much remuneration they receive in total.

A statement from the association read: "IMA welcomes the government's announcement on taking measures to strengthen accountability and address concerns in relation to excesses in executive directors' remuneration.

"We recognise that reforms are needed, particularly to improve transparency and address the lack of a clear link between pay and performance."

It added that it will be looking at the proposed reforms closely and will contribute to the government and industry efforts to promote best practice in this field.

The news comes shortly after the IMA launched its new mixed investments 0-35 per cent shares sector, which will be calculated from an effective start date of January 1st 2012.

The new definitions were reached following a collaboration with the Association of British Insurers to harmonise managed and mixed investment sectors and provide customers with greater clarity.ADNFCR-2318-ID-801276319-ADNFCR