Global business leaders: we are paid too much

Global business leaders: we are paid too much

Almost 80pc of British business leaders feel that senior executives are paid too much, according to Grant Thornton. On an international level, 66pc reflected this sentiment, the survey of 2,800 businesses in 40 countries found.

The survey also showed that two-thirds (67pc) of business leaders want shareholders to have a greater say on pay packages for senior executives.

Commenting on the findings, Simon Lowe, Chairman of the Grant Thornton Governance Institute, said: "Dialogue between boards and investors is essential to good governance. That 67% of global business leaders want investors to get more involved in setting executive remuneration is encouraging.

"Historically within the UK we have seen some reticence amongst investors to actively engage in this process. However this appears to be changing [and] confirms the growing sentiment reflected by the recent investor spring, in which the investment community came out in force to challenge a number of remuneration proposals."

Data last week showed that pay rises for company executives are showing signs of "cooling off", although a minority are continuing to receive substantial increases.

Earnings growth slowed in the past year to a median of 8.5pc, lower than a similar study last October, research by Incomes Data Services (IDS) among chief executives in the FTSE-100 showed.

Bonus payments fell by 2pc to around £670,000.

Steve Tatton of IDS said: "Remuneration committee members have now realised that their decisions will be scrutinised very closely by shareholders and the media.

"Shareholders are demanding to know what they are paying for. No longer, it appears, do remuneration committees and directors have a free hand, in the words of some, 'to pay themselves what they wish'."

This article was originally featured on

Thursday, 30 August 2012

Share this article

Any questions? Any comments?

Your instant reactions to this article can be posted here.

Be the first to make a comment...