The Advisors' Blog

– Broc Romanek, CompensationStandards.com

Here’s the teaser for this longer Towers Watson article:

Much has been written about the scale of pay awards to CEOs at FTSE-listed companies over the last decade — and the potential consequences for pay inequality. Towers Watson’s research shows that total pay for CEOs of FTSE 350 firms increased by around 75% over the last decade and now stands at about 70 times median full-time earnings for the U.K. As a response to the public’s increasing sense of inequality and perceived lack of fairness in the area of pay, new U.K. regulations that came into force in 2013 specifically require more transparency about the relative rate of pay increases between senior executives and the wider workforce, along with increased disclosure regarding how pay and workforce conditions are taken into account when setting executive pay.

It seems likely that increased regulatory and public focus on pay differentials will drive companies to look again at the integration and alignment of senior executive pay strategy and arrangements with those for employees in other parts of the organization. As part of the process, companies will need to review the way in which pay for the broad executive cadre fits with arrangements for the most senior executives.