A Challenging Time for the ‘Pay for Performance’ Model
1st April 2009
It is hard to believe that just six months ago executive pay appeared to be moving out of the spotlight. Not any more.
Executive pay is once again subject to the full glare of media scrutiny as politicians, regulators and shareholders all call for changes. While City institutions have rightly attracted most of the attention, the dramatic fall in companies’ share prices and lowered profit expectations have led to a number of bodies issuing guidance notes on how companies should structure their pay arrangements in the current environment.
Given the dizzying speed with which events have unfolded, we have taken the opportunity in this Briefing to reflect on the last few months. We also consider the issues that we anticipate will come to prominence over the next year once the initial furore over executive pay dies down and a more pragmatic, less emotionally-charged, debate can take place.
Read the full article here (PDF).