Genius Methods has been hosting a successful series of Panel Debate and Networking evenings on topical Corporate Governance issues and the latest, held on February 26th at the RAF Club, London, was on the topic of Director and Executive Remuneration.
Genius Methods has produced a White Paper based on the conclusions from the evening’s discussions which includes input from many expert participants and a number of key recommendations for the future. You can read the White Paper here.
Over 50 executives, directors, consultants and academics attended the debate and brought many unique and valuable insights with them. Some of the issues identified throughout the debate were balancing short and long terms goals, creating fair bonus systems and the issue of market comparisons creating ongoing upward trend of pay scales.
Warren Buffet has said that “in recent years Remuneration Committees too often have been tail-wagging puppy dogs meekly following recommendations from Remuneration Consultants, a breed not known for allegiance to the faceless shareholders who pay their fees”. One impact of this and of market comparisons has been that Executive Directors have been receiving increases in remuneration not in any way linked to their performance and that of their companies.
Although there has been much talk in the media covering shareholder discontent over remuneration levels, Sean O’Hare, Partner at PwC and panellist, suggested that there are not as many complaints as the media would suggest and remuneration reports are not often voted against.
Throughout the debate, various other aspects were covered including behaviours, succession planning, voting on remuneration, NED independence, director education, diversity, strategic planning and remuneration committee tensions. We hope that you find the White Paper interesting and useful and we look forward to seeing you at Genius Methods’ next Panel Debate and Networking evening on 14th May on Reputation Risk.
For more information, please email Genius Methods’ CEO Sharon Constancon at firstname.lastname@example.org.