Executive Pay in times of crisis
Executive pay is always an emotive issue, but this has been exacerbated by the issues surrounding the COVID-19 pandemic, where so many organisations have cut or withdrawn dividends or furloughed staff in order to stay in business and we are, increasingly, seeing an expectation that executives will share the pain. According to the FT, 13% of the FTSE 100 have cut executive cash bonuses, but long-term incentive payments often comprise the biggest element of executive pay and can be affected by share price movement.
Directors are accountable for the company’s sustainability and must consider what would be most likely to promote the success of the company for the benefit of its members as a whole. In doing so, they must have regard to a number of factors including the interest of employees and other stakeholders and the likely consequences of any decision in the long term.
Peter Swabey, Policy & Research Director at The Chartered Governance Institute will host a panel discussion with Andrew Ninian, Director of Stewardship and Corporate Governance at the Investment Association and a member of a corporate remuneration committee to discuss: