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Latest News

Fat-cat pay bonanza continues

by Personnel Today 11 Dec 2003
by Personnel Today 11 Dec 2003

Executives
are still being rewarded for failure by receiving large remuneration packages
even if companies under perform, a survey claims.

The
poll shows that 62 per cent of FTSE 100 firms provide incentives based on
growth targets, but of these, 82 per cent offer bonuses even if the firm fails
to meet market expectations.

The
report by Halliwell Consulting described the link between executive salaries
and performance as ‘nonsense’ and found that on average companies will pay
performance bonuses to directors when they achieve just one third of the growth
expected by the market.

However,
it reported that other directors in the survey needed just one-twentieth of
market expectations to get a reward bonus.

By Ross Wigham

Avatar
Personnel Today

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