Menu

Login to access your account

Thu, 4 June 2020

Personalise Your Politics

Subscribe now
The House Live All
Coronavirus
Coronavirus
We cannot ignore the silent crisis of poor mental health in the construction industry Member content
Coronavirus
Coronavirus
Coronavirus
Press releases

'Pay transparency should support an inclusive company culture' - CMI comment on Fat Cat Friday

'Pay transparency should support an inclusive company culture' - CMI comment on Fat Cat Friday

Chartered Management Institute

1 min read Member content

Chartered Management Institute (CMI) CEO Ann Francke speaks out on #FatCatFriday


UK workers waking up this morning will be rightly upset that in the time its taken them to get back into the swing of work, some FTSE 100 CEOs have already earned an entire average UK annual salary.

No-one begrudges any leader great pay for a great job, but employees just don't have confidence that performance comes into it. CMI research has shown that nearly three-fifths of FTSE 100 CEO pay is made up of LTIPs and shares - however this is the area of pay least tied to achievement, and more often linked to uncontrollable market forces.

Whilst we welcome the Government's action to require large companies to publish executive pay ratios, this is just a small step towards restoring trust in business leaders: we must see salaries linked to quantifiable performance indicators set by the board. Pay transparency should support an inclusive company culture, so why not link your CEO's salary to metrics on employee engagement and satisfaction?

Categories

Economy
Associated Organisation