The phrase ' shutting the stable door after the horse has bolted' springs to mind, but the CIPD has published what it calls "general principles" on executive pay.
They have been designed to act as a framework to help HR directors and remuneration committees when developing policies, practices and structures for executive pay and reward. The CIPD has consulted with reward experts and drawn up 10 principles "intended to stand the test of time, rising above some of the excessively heated aspects of the current debate on executive reward".
Charles Cotton, CIPD reward adviser, says: "There's been an awful lot of heat, and not a lot of light in the debate about executive pay and bonuses. Unfortunately, the issue has been reduced to a slanging match around how much executives earn.
"We need to move beyond this - organisations should focus their attention on what they need to do to ensure their reward packages support the needs of the business and its stakeholders, and to attract and retain the talent the business requires."
Cotton says the principles represent the CIPD's view on how executive remuneration should be structured, irrespective of an organisation's sector or business model.
Click here to read the 10 principles on the CIPD website.
Comments (1)
To give the CIPD credit, at least they have taken a stand! The response of the UK Government to date has been at best evasive, and at worst sluggish.
The Dutch bankers’ association and finance ministry on the other hand have worked together and issued a code on bankers' pay. This code will restrict such pay-outs to one year’s salary. The code does not extend to traders and investment bankers who are not executive board members, but it does call for a "meticulous, restrained and long-term remuneration policy." A quick glance at the Dutch code reveals remarkable similarities with the CIPD guidelines.
Surprisingly, rather than rejecting the introduction of the code, the chief executives of ING Bank and ABN Amro have given their broad support, even if they will have to face the future challenge of how to attract foreign executives.
More important than the timing of the CIPD guidance will be the reaction of UK businesses. Let's just hope that HR Directors will not be satisfied with the response of, "It won't work here" from their fellow board members
http://hrcasestudies.blogspot.com/2009/09/dutch-knock-out-scotland-and-take-lead.html
Posted by GrahamS | September 10, 2009 5:21 PM
Posted on September 10, 2009 17:21