CEO pay finds a better way
New research from the UK has found robust evidence that remuneration report voting, or 'say on pay', does actually improve executive pay practices, writes Guerdon Associates.
You must be logged in to read this article
Not a member yet? Register today ›
Business Spectator is available on all of your devices so you can access the latest news and commentary where and how you like
Register now ›
Already a member? Sign in here
- Log in to post comments
Comments on this article
Comments PolicyNice story (CEO pay finds a better way, June 16). The real tragedy is that the CEO pay game is a closed shop. Because most of the shares in a company are owned by institutional investors (other companies) it is mostly a forgone conclusion when the usually only item on the agenda at an AGM is director and CEO pay. Because CEOs of the shareholder companies eventually get a flow on effect they almost never vote against a pay deal.
It is a closed shop and this is why CEO pay has grown at such an alarming rate and has far outstripped any other sector. One can understand why ordinary Australians get offside when the captains of business have their snouts well and truly into the feeding trough whilst the same people have their business representatives get in front of the cameras to squeal "we will be ruined" when average workers just want a minuscule rise to keep up with rising prices of things like food and electricity.
If we had fair minded governments then the institutional companies would have their voting power limited to say only 20 per cent of their actual holding so that this rort was put to an end. I'm not holding my breath that what is fair will ever happen though.