Baring Asset Management (BAM), the UK fund manager, has put forward a five-point policy, arguing that executive remuneration should be based on total shareholder return over earnings per share growth or performance relative to the sector.

BAM has defined its stance on executive pay in the wake of the furore caused by last week's shareholder revolt at GlaxoSmithKline's annual general meeting. The fund manager believes that packages should be competitive to recruit and retain staff, but that remuneration should be set in a clear and transparent manner and aligned more closely with shareholders' interests.