Directors receiving bonuses for sub-standard performance

Eight out of ten directors are still receiving bonuses for
sub-standard performance a survey has revealed.

The report Sharing in the Boardroom claims a lack of
information about company remuneration schemes means shareholders are finding
it impossible to establish a clear link between directors’ pay and performance.

PricewaterhouseCoopers commissioned the survey, which was
based on annual reports and accounts from 128 companies in the lower half of
the FTSE 500.

Graham Ward-Thompson, partner at PricewaterhouseCoopers,
said, “A greater level of clarity is needed to ensure that shareholders
understand the criteria by which directors are being judged. Companies must
address this issue before they are forced to act by change in the law.”

By Ben Willmott.
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