The Association of British Insurers (ABI) and National Association of Pension Funds (NAPF), whose members are leading institutional investors in UK markets, have published this statement of best practice setting out the expectations of shareholders that boards negotiating executive service contracts will give careful consideration to the risk of inappropriate termination provisions leading to "rewards for failure". This statement, revised in February 2008, replaces the December 2003 statement.

For more information on the statement, see Practice note, Joint statement on executive contracts and severance.