The importance of the link between ‘pay’ and ‘performance’ continues to hit the headlines and generate public debate. A recent report by the Executive Remuneration Working Group acknowledged that:
“There is growing concern from both companies and investors with the current levels of executive pay and its complexity. Executive pay is opaque to the outsider and difficult even for some of the participants, remuneration committees and shareholders to understand (p.4).”
Whilst public attention has been focused on executive pay, increasingly the discussion is shifting to highlight ‘gaps’ – be they between what executives and the rest of the workforce get paid or more specific ones such as the gender pay gap. This is no longer a debate about executive pay but now tipping into a more complex issue about ‘fairness’ and ‘equity’ and so has become very entangled with a company’s approach to corporate social responsibility.
In this white paper we address the communication challenge. The Directors’ Remuneration Report (DRR) within the annual report has the potential to offer transparency and insight about executive pay and how it is tied to performance and promoting the long-term success of the company. In many cases it’s an opportunity lost and instead investors are faced with dense and difficult reports that have little thought into how the information is presented and what story it tells.
To read more, please download the full report below, or if you would like to speak to us about how we can help you improve your remuneration report, please contact our Business Development Manager, Mitchell Kirkham-Cooper, firstname.lastname@example.org