ISS-Corporate’s Post

In the competitive landscape of European business, non-executive directors are facing potential setbacks due to uncompetitive compensation packages. This issue could lead to a significant talent drain from European boards if not addressed promptly. Companies must reassess their remuneration strategies to attract and retain experienced directors, ensuring their boards remain robust and effective. As governance and oversight demands grow, how can European firms align their director compensation to reflect the increasing responsibilities and expectations of these roles? https://lnkd.in/d27eqbe5

Must Read: How Companies Actually Decide What to Pay CEOs "Through the 1970s—when the ratio of CEOs’ pay to that of the average worker was much lower, at somewhere between 20:1 and 30:1—the lodestar was “internal equity,” or how an executive’s pay compared with that of other employees in the company. A nascent industry, executive-compensation consulting, changed this. Consultants recommended switching to “external equity,” meaning compensation would be based on what other CEOs were paid. This was merely a useful sales tool—even though the consultants didn’t have solid evidence or theoretical justification for this method, they could attract business by vowing to set ambitious goals for their clients. Still, corporations adopted the standard of external equity, and CEOs got a lot richer." "External equity became the foundation of the series of pay practices and procedures that guarantee CEO pay will continue to skyrocket—something that I observed firsthand for over 20 years" FULL ARTICLE BELOW Vern Hughes Democracy First John Kehoe Patrick Durkin Chris Richardson Saul Eslake Michael Read Julie Hare Caitlin Cassidy Bronwen Clune Tegan Jones Marie J. Jack Zervos Laurie Patton Jessy Wu .Alastair D. Tom McIlroy Hannah Wootton Claire Lehmann Alan Dupont Damon Kitney Andrew Burke John Stensholt Clive Hamilton #ceopay #salaries #equity #ceo #leadership #elitism #egalitariansim #fairgo #newaristocracy

CEO Salaries are always a hot topic. As we navigate economic shifts and evolving corporate expectations, executive compensation reveals much about priorities and performance metrics at the top. This article breaks down the latest trends and benchmarks for CEO pay in 2024, offering insights into what drives executive rewards in today's business landscape. #CEOsalaryreview #CEO #Odgersberndtson #payreview #highestpaid

This gap between CEO pay in the UK and US, which has become something of a theme recently, is a tricky issue. On the one hand, it’s understandable why large companies want to be competitive when recruiting top executives. But, at the same time, organisations need to be fair to the wider workforce and recognise that success cannot be delivered, even by the most fabulous CEO, without a talented, committed and motivated team at all levels of the business. It is interesting that the report highlights CEO pay is rising at just 0.5% compared to average wider workforce pay increases of 5.9%. This may indicate that there is potentially more scope for remuneration committees to increase executive pay but that they’re choosing to exercise some restraint. Yes, there are some large companies that are raising concerns about limits on executive pay, but perhaps the low average increases in CEO pay signal that this is not a universal problem. CEO pay averages are always difficult to interpret because of fluctuations in performance-dependent variable pay but, before sweeping changes are made to bring the UK in line with the US, I suggest we work out whether this is a real issue for most companies or just a problem for a vocal few. #ExecutivePay #Remuneration #CorporateGovernance #ESG

Our recent global survey shows Asian CEOs Earn Half and Face 14x Incentive Gap Compared to U.S. Counterparts. Please click here to read more: https://lnkd.in/gYaAfs6G #ExecutiveCompensation, #CEORemuneration, #ComparativeCompensation, #LongTermIncentive, #ShortTermIncentive, #ExecutiveBenchmarking, #StrategicCompensation #Pretiumasia

Exciting news! The Australian Financial Review has just released its list of the top 50 highest-paid CEOs, revealing key trends in executive compensation. One notable trend is the increasing emphasis on performance-based incentives. As search consultants, we are frequently called upon for advice on shaping executive compensation. Interested in how these trends could impact your organisation? Let's connect! #ExecutiveSearch #Industrials #CEOInsights #WhereLeadershipMatters

Our 2024 US Professional Services Partner Compensation Survey is now available! This detailed report captures the latest trends and insights into professional services partners’ compensation, as well as their role structures, support ratio, and expectations. 📌 Key Findings: • Firms have elevated the bar at both the staff and partner levels and have not had to pay the same premiums to attract or retain diverse talent. • Respondents’ outlook for their firm’s fiscal year compared to the previous fiscal year skews slightly optimistic, with 44% who are optimistic.  • Partner turnover was higher in 2024 compared to 2022: 49% of respondents said partner turnover was higher or significantly higher compared to their expectations at the beginning of the year Explore the full report here: https://bit.ly/3ReH29g. #Leadership #ProfessionalServices #Compensation #Partners

Ensuring fairness and opportunity in businesses is vital for long-term success and innovation. Recent reports highlight that disparities in pay and representation remain a significant challenge, even at the highest levels of UK companies. For example, board members at FTSE 100 firms still experience notable pay gaps, underlining the importance of reviewing how talent is supported and rewarded. This isn’t just about men versus women- it’s about ensuring that everyone, regardless of gender, has an equal chance to succeed, be recognised, and be rewarded fairly for their skills, expertise, and contributions. Here are some practical steps businesses can take to promote fairness and opportunity: 👉 Review pay structures. Regularly assess your pay practices to ensure they are fair and consistent across all roles and responsibilities. 👉 Encourage career progression. Create clear pathways for talented individuals to step into leadership roles and make a real difference. 👉 Mentor and develop talent. Provide guidance and resources to help your team grow and achieve their full potential. At Nordens Chartered Accountants, we're proud to foster a culture that champions diversity, inclusion, and talent and firmly believe that focusing on fairness and opportunity strengthens teams, drives innovation, and supports sustainable success. Let’s all aim to create workplaces where everyone has the chance to thrive and contribute their best!   ***   I'm Joe, a strategic business advisor helping ambitious businesses to think BIGGER and do MORE. If you think I can help you achieve your business dreams and reach your personal dreams, send me a DM today.   #businessgrowth #empowerment #businesssuccess

Executive Compensation: Justified or Not? 🤔 The debate surrounding executive compensation has sparked intense discussion in recent years. On one hand, high pay packages can attract top talent 💸 and drive performance 📈, as executives are often incentivised to meet ambitious targets. However, on the other hand, excessive compensation can widen the income gap 📊 and create unfairness 🤕, leading to decreased employee morale and public trust. The question remains: is it fair for executives to earn hundreds of times more than average employees? 🤑 Or is it a necessary cost to drive business success? 📊 Research suggests that high executive pay doesn't always translate to better company performance, and alternative incentives like equity or performance-based bonuses could be more effective. Let's spark a conversation! 💬 Share your thoughts on executive compensation, income inequality, and business ethics. Can we find a balance between attracting top talent and promoting fairness? 🤝 #ExecutiveCompensation #IncomeInequality #BusinessEthics #CorporateGovernance #Leadership

Insights into how S&P 100 companies pay execs they promote internally to CEO, which from the article is about 80% of the CEOs. The article calls out the need to consider the timing of the promotion and how it fits into the regular compensation cycle to determine supplemental compensation. LouAnn Conner https://lnkd.in/gEaSZakH