Under new government proposals directors’ pay will be put to an annual shareholder vote.
Responding to the government’s consultation, Simon Patterson, worldwide partner at Mercer, said: ‘Evidence suggests that disclosure can actually ratchet up executive pay deals. The peer comparisons recommended in the Greenbury code have undoubtedly been of most interest to the executives themselves, no doubt fuelling aspirations at the top.’
Patterson added: ‘In practice, such votes will come too late when terms of executive pay and benefits are already written into employment contracts, protected by law.’
Mercer recommends instead that changes to remuneration terms in employment contracts before executives are taken on would be more effective.
Growth in revenues of 6% has seen KPMG UK break the £2bn barrier, but its managing of partners has seen average take-home fall
Accountancy Age Jobs is delighted to announce the launch of a brand new look website for finance and accountancy professionals
The old fashioned method of placing recruitment adverts in the local rag is dead
The new joiners, from school leavers to graduates and those on industrial placements, will be working across a range of service lines