Executive Remuneration Working Group (ERWG) meaning

In legal practice, “Executive remuneration Working Group” (ERWG) describes the independent industry panel convened by the investment association in 2015 to review and reform executive pay practices at UK‑listed companies. It is not a statutory or case‑law term; it is a market label for the panel and its 2016 recommendations, which continue to inform investor expectations and governance standards. The ERWG called for simpler, more transparent remuneration structures aligned to long‑term value, including reduced reliance on complex LTIPs, greater use of restricted shares, clearer performance measures, deferral, and robust malus and clawback. Its work influences remuneration committee decisions, shareholder engagement and voting, and the drafting of directors’ remuneration policies and reports under the Companies Act 2006, Listing Rules and the UK Corporate Governance Code, as reflected in the Investment Association’s Principles of Remuneration. Usage is consistent across England & Wales, Scotland and Northern Ireland. In Ireland, while the ERWG has no legal force, its recommendations are often treated as persuasive best practice by listed companies (alongside the Companies Act 2014 and SRD II‑based remuneration policy/reporting), particularly where UK institutional investors are significant. Although the ERWG has completed its work, practitioners commonly refer to the “ERWG recommendations” as shorthand for prevailing investor‑led expectations...