Problems remain with directors’ pay, says IoD South West
Commenting on today’s report from Incomes Data Services on directors’ pay, Gerry Jones, chairman of the Institute of Directors in the South West, said:
“Very high levels of pay at the top of the UK’s largest companies damage the legitimacy of business as a whole.
“Most directors in the private sector earn nothing like FTSE salaries, and yet are often damaged by association. It is therefore welcome that top directors’ basic pay is not rising as fast as in the past.
“However, the level of pay in some cases remains excessive, and incentives are often not properly linked to the long-term fortunes of the company.
“Shareholders are the key. They have shown that their influence can control directors’ pay. Working with boards, shareholders need to make sure that directors are judged on a range of criteria that reward genuine long-term performance, not just on fluctuations in the stock market.”
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