THE FUTURE OF THE REMUNERATION COMMITTEE IN A NEW ERA OF CORPORATE GOVERNANCE
Tuesday 5 February 2019
Screening Room, South Wing, Somerset House
London WC2R 1LA
- Rebecca Long-Bailey - Shadow Secretary of State for Business, Energy and Industrial Strategy
- Iain Wright - Director of Corporate Governance, Institute of Chartered Accountants for England and Wales
- Catherine Howarth - Chief Executive, Share Action
- Luke Hildyard - Director, High Pay Centre
- Louise Fisher - Chair, Chartered Institute for Personnel and Development (Chair)
Last year, median pay for a FTSE 100 CEO pay leapt by 11% to £3.9 million. Opinion polls repeatedly show public support for draconian measures such as capping executives' pay. Top pay and perceived greed are also given by survey respondents as the main reason for their lack of trust in business.
It is clear that this situation is that unsustainable and that reform of the Remuneration Committees that set top pay will be needed. Indeed, the new corporate governance code sets out provisions that will force RemCos to review how they operate:
- How should they undertake their new responsibility to oversee pay practices throughout the organisation?
- How should they interact with the new mechanisms designed to promote stakeholder voice in corporate governance?
- How should they assess company performance, in light of the increased emphasis in the code on directors' responsibilities beyond delivering returns to shareholders?
To answer questions such as these, the High Pay Centre and the Chartered Institute of Personnel and Development undertook an extensive programme of interviews with remuneration committees, plus other stakeholders in the pay setting process with backgrounds in investment, people management, board effectiveness and remuneration consultancy.
The insights and conclusions from this research will be presented at the event, followed by an expert stakeholder discussion on the future of the remuneration committee.
To reserve your place, please rsvp to email@example.com
Since 1 January 2020 the average FTSE 100 CEO has earned:
Income inequality in the UK
Wealth inequality in the UK
- High Pay Day 2020: Scope for fairer pay and lower inequality remains considerable
Pay for the typical FTSE 100 CEO in 2020 has already surpassed the amount the average UK worker earns in an entire year. We can do much more to achieve a better balance between those at the top and everybody else
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