Outsourcing firm G4S has said it will review its renumeration policy over the next year, but refused to answer questions from MPs regarding its executive pensions policy.

In a letter (16 May) to Work and Pensions Committee and Business, Energy and Industrial Strategy Committee chairs, Frank Field and Rachel Reeves, G4S remuneration committee chair, John Daly, said that it has made “significant changes” remuneration policy over the past year, which have been “well received by shareholders”.

However, the committee questioned whether the firm’s current policy of pension contributions of 15 per cent for new executive directors and 25 per cent for existing directors “is in line with the pension contribution rates for the rest of the workforce”.

Field wrote: “As you will be aware, the Investment Association’s (IA) guidelines - as well as the UK Corporate Governance Code – state that pension contribution rates for executive directors should be aligned with those of their workforce.

“We recognise that contractual obligations may make it difficult for existing pension contribution rates to be changed, but it is of course open to directors themselves voluntarily to change their terms—and in other firms, some directors are already doing this.”

Current G4S CEO Ashley Almanza received a pension of £239,638 in the past year, taking his total fixed pay to £1,308,188, while chief financial officer, Tim Weller, received a £131,325 pension for the year, taking his total pay to £817,950.

The group runs a defined contribution group personal pension, for which the CEO and CFO receive cash allowances of 25 per cent and 20 per cent, respectively.

The joint committee asked whether G4S has any plans to support the IA guidelines and to what timetable.

Despite this, Daly did not state whether G4S contribution rates for executive directors was in line with most of its workforce, adding “just under 98 per cent of voting shareholders voted in favour of the remuneration report at their latest annual general meeting”.

He added: “We intend to review our remuneration policy over the course of the next year. As usual our review will include an important consultation with shareholders.

“We would be pleased to respond to your questions on executive pensions once we have completed our consultation and review next year.”

According to the group’s latest remuneration report, 15 per cent is in line with senior management and recent appointments to the executive committee.

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