United Kingdom: Executive Remuneration

European defence technology start-ups secured a record $8.7bn in venture capital during 2025, creating unprecedented challenges in talent retention and incentive design.

Private equity sponsors and portfolio companies are beginning to grapple with how artificial intelligence adoption should influence management incentive plan design, talent retention strategies, and performance metrics. As AI transforms value creation across industries, the question emerges whether traditional equity compensation structures remain fit for purpose or require fundamental reconfiguration to align with new business realities.

Private credit providers taking control of distressed borrowers face unique challenges in designing effective management incentive plans. Unlike traditional private equity structures, post-restructuring scenarios require innovative combinations of equity and cash-based incentives to align management interests with lender objectives while navigating significant debt obligations and steep return hurdles.

This publication examines key developments from the 2026 AGM and reporting season, analyzing emerging trends in corporate governance, executive compensation, and climate-related disclosures. The analysis explores how UK companies are adapting to new regulatory requirements and responding to evolving shareholder expectations across governance practices.

Companies operating employee share plans and management incentive arrangements must prepare and submit annual returns to HMRC by 6 July 2026, with penalties starting at £100 for late filing.

In this Winter Update we reflect on key events affecting Incentives and Remuneration and look at what 2026 has in store.

Our research on non-executive directors remuneration has observed a significant increase in complexity and time commitment associated with Board duties.

Welcome to the current edition of Capital Markets Update, the monthly briefing from the Corporate Group at Walker Morris, rounding up the previous month's regulatory developments...

The Investment Association (IA) has written to remuneration committee chairs of FTSE 350 companies setting out the issues it will consider as part of the fundamental review...