Long-lived managers: who are they and why institutional investors like them

“Interested institutional investors - who are looking at the Italian market - do not consider overall levels of compensation for top management to be an issue,” comments Fabio Bianconi, Director of Morrow Sodali, in an article appeared on Milano Finanza on company managers and executive remuneration. 

“In countries like the US or UK, there has been an increasing criticism on managers’ remuneration, especially on the higher ones. In Italy - what interest the most - is managers’ performances and – what is recently becoming a trend – the effort to link performances to results: the so called pay for performance.”

“We have been going from a market made up by retail investors – for whom dividends were considered a priority – to stakeholders such as pension funds whose investment decisions have a longer time perspective and therefore are more focused in the business’s constant growth and, above all, in its sustainability.”

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