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Executive pay

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  • Publish date: 13 December 2017
  • Archived on: 13 December 2018

Following on from our recent article about corporate governance, Elizabeth Richards updates Business & Management on the latest developments regarding executive pay.

Executive pay has been in politicians’ sights, but the reforms announced by the government are underwhelming. The Investment Association will manage a public register of listed companies that encounter a 20% or more shareholder vote against the Directors’ Remuneration Report. 

Quoted companies will need to publish ratios that define their CEO’s pay as a multiple of the average pay of other UK company employees. Some companies will worry about justifying the gap between the top and the middle, others will worry their CEO will leave once they compare their position with their peers.

This is an extract from the Business & Management Magazine, Issue 260, December 2017.  

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