Time to thin down fat cat pay

The amazing fecundity of executive pay is usually viewed with something bordering on detached indifference by HR professionals, as if it had nothing to do with them. It is not so: HR is up to its neck in it. According to pay consultants Hewitt, Bacon and Woodrow, in 84% of European companies, decisi...

Full description

Saved in:
Bibliographic Details
Published inPersonnel Today p. 10
Main Author Overell, Stephen
Format Trade Publication Article
LanguageEnglish
Published Sutton Reed Business Information UK 17.02.2004
Subjects
Committees
Confidentiality
Corporate governance
Economic value added
Executive compensation
Executives
Guidelines
Human resource management
Shareholder activism
Stockholders
United Kingdom > UK
Online AccessGet full text

Cover

More Information
Summary:The amazing fecundity of executive pay is usually viewed with something bordering on detached indifference by HR professionals, as if it had nothing to do with them. It is not so: HR is up to its neck in it. According to pay consultants Hewitt, Bacon and Woodrow, in 84% of European companies, decisions about executive pay are led by the remuneration committee, made up of non-executive directors (Neds). Should one take seriously all those post-Higgs claims that including HR in the "gene pool" of Neds would magically improve corporate governance? A distinctive HR manifesto on executive pay would include: 1. Differentials disincentivize. 2. Set demanding targets. 3. Go long-term. 4. Disclose everything.
ISSN:0959-5848