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Personnel Today

Merit pay push has little impact

by Personnel Today 1 Feb 2000
by Personnel Today 1 Feb 2000

About one-third of institutional investors have little or no interest in
linking directors’ pay to the performance of their business.

The finding, revealed in a report by PricewaterhouseCoopers, indicates that
the government policy of self-regulation of directors’ pay is having little
impact.

This comes six months after the Department of Trade and Industry issued a
consultation paper on directors’ remuneration.

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It proposes that quoted companies be subject to more extensive disclosure
requirements and calls for clear links between directors’ pay and performance.

Moira Conoley, a partner in PricewaterhouseCoopers Global HR Solutions,
said, "Institutional investors are unlikely to support any demands from
the Government for a push for performance-related remuneration until they have
clear evidence it will lead to superior business performance.

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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