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.
As KPMG celebrates its annual inclusion week, Anna Purchas, head of learning at KPMG in the UK, discusses why investing in talent is a priority for the firm
Jon Addison, LinkedIn UK’s head of Talent Solutions, explores how businesses can plan ahead to ‘Brexit-proof’ their talent pipelines
BDO has announced plans to attract top talent in its 2017 intake
Growth in revenues of 6% has seen KPMG UK break the £2bn barrier, but its managing of partners has seen average take-home fall