Merit pay push has little impact

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

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

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.

Comments are closed.