Recent years have seen a dramatic rise in chief executive pay packets in many of the UK’s largest firms. Often these rises have occurred within the context of no marked upturn in company performance, while real wages for many employees have still not recovered to their pre-2008 levels. This demonstrates that the current corporate governance structures in many organisations are failing, and new research by the CIPD and High Pay Centre attributes this, in large part, to a lack of focus on people and culture.
This report shines a spotlight on the role of remuneration committees. It identifies a number of flaws with the existing model, but also highlights opportunities for significant improvement. These committees are crucial, and we believe that, with a wider remit and improved reporting on people and culture, they could play a fundamental role in building successful, responsible and sustainable businesses.
The recommendations in this report are aimed at the boards and shareholders of large, publically listed organisations. Learn more about the implications for HR teams here.
Watch this video on the reasons behind our new research
This video outlines the reasons behind this new report, and reinforces the importance of transparency within businesses.
Download the full report here:
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