The Advisors' Blog

– Broc Romanek, CompensationStandards.com

Here’s an excerpt from this Manifest blog about this UK study:

The authors believe that CEO reward practice has reached a ‘crisis point’ and the data they present shows that CEO pay is more influenced by FTSE rankings and size than financial performance. The report recommends a new approach to CEO pay suggesting that its analysis ‘shows that current executive reward practice is based on misplaced assumptions about the motivating force of money. CEO reward practice also, therefore, fails to address some of the root causes of why current rewards might not have the desired effects. Organisations need to become more diverse, more embracing of shared and accountable leadership, more transparent in their reporting and more concerned with stakeholder rather than simply shareholder value’.