The Investment Association has commissioned the Executive Remuneration Working Group to launch a major crackdown on the soaring pay packages for executives, who mostly performed poorly.

Being one of UK's most powerful shareholder groups that represent the £5.5trillion fund management industry, The Investment Association is increasingly concerned about the unexplainably high pay packages for executives.

This is Money reported that these pay packages are also becoming very complex. The executive pay has lead to a windfall for many company bosses after shares skyrocketed in value.

According to chief executive Daniel Godfrey, the huge rewards for the executives have angered shareholders and the public. This will lead to reputable damage among various businesses and industry.  

Godfrey, along with Legal & General head Nigel Wilson and Sainsbury's chairman David Tyler will come up with proposals that will simplify the pay structures spring next year. Newton Investment Management head Helena Morrissey, Aggreko remuneration committee chair Russell King, and city grandee Edmund Truell will also be in the group.

Godfrey said in a statement from Citi Wire, "Complex pay structures can make it difficult for investors and the wider community to judge whether high rewards are being earned for exceptional management performance or mediocre performance flattered by favourable external factors."        

"Simplification will help our members in their engagement with companies with the objective of supporting strategies and incentives that lead to long term, sustainable wealth creation for the benefit of our clients, the companies themselves and the economy," said Godfrey.

Godfrey's statement comes after IA member Royal London launched an assault on Sports Direct before its annual general meeting. IA has already given warning about the excessive bonus scheme among Sports Direct's executives. Royal London Asset Management corporate governance manager Hamilton Claxton even described the bonuses as "unacceptable."