Research Report

The power and pitfalls of executive reward: a behavioural perspective

This information is available for download

Format Title File size
 

The power and pitfalls of executive reward: A behavioural perspective

Published December 2015

File size:
361 KB

Download the 'The power and pitfalls of executive reward: A behavioural perspective ' pdf 361 KB, the-power-pitfalls-executive-reward-behavioural-perspective_2015.pdf. Opens in a new window.

The report addresses executive rewards in the UK and beyond and explores to what extent current reward structures encourage the right kinds of chief executive characteristics. The findings reveal that the gap between CEO pay and other employees’ pay continues to increase; even during times of economic recession and that CEO reward practice has reached a crisis point.

How does CEO reward practice need to change in the future? The report recommends that CEO pay needs to become evidence-based, underpinned by more holistic metrics, building on sound enforceable policy to encourage sustainable business performance and a culture where organisational learning and innovation happen.

‘High salaries, and short-term bonus payments, are likely to reinforce
celebrity status, rather than encourage true building of reputation.’

Content of the report

Executive summary

Introduction
  • An overview of current CEO reward structure and allocation
  • Previous CIPD reports on reward
  • The report findings: the behavioural science literature and beyond
  • Potential barriers to changing CEO reward practice
  • Summary and conclusion

Recommendations for change
Suggestions for further reading
References

The appendix is available to download below and take a look at The view from below: What employees really think about their CEO’s pay packet

Download sections separately
Format Title File size
 

The power and pitfalls of executive reward: A behavioural perspective - Appendix
Published December 2015

File size:
95 KB

Download the 'The power and pitfalls of executive reward: A behavioural perspective  - Appendix' pdf 95 KB, the-power-pitfalls-executive-reward-behavioural-perspective _2015_appendix.pdf. Opens in a new window.

 
 

The view from below

This survey highlights the perceived corrosive effects on workforce productivity of having CEO pay out of kilter with organisational performance.