Suchergebnisse

Despite substantial corporate governance and regulatory reform on both sides of the Atlantic, which started over two decades ago, executive pay remains an unresolved problem. Twenty years since the publication of the groundbreaking Cadbury Report, criticism of executive pay is more severe than ever before in the United Kingdom. The relationship between pay and performance is still highly questionable, and executive remuneration continues to vastly exceed and outpace average employee pay. In this article, we discuss and evaluate the U.K. coalition government's attempts to influence practice, through the Hutton Review of Fair Pay and the latest revised U.K. remuneration reporting regulations. Although we welcome these changes, it is our view that regulation can only go so far in addressing executive pay and in creating a wider perception of fairness. Ultimately, individual remuneration committees must focus far more on managing internal relativities rather than on the external executive pay market, which as well as improving external perceptions is also more likely to increase levels of employee engagement and performance.