Sustainable business commentary | |

Executive Pay: Doing things right for the future

Overview

The idea of "Building Back Better" - using this unique period to reflect on and question historic norms - is a concept that has filtered into many areas of society including how executives should be paid. The newspapers are full of stories of directors in well-known companies giving up part of their pay packages to "share the pain" being felt by stakeholders such as employees and shareholders. We are also witnessing a number of those that can afford to do so applying the pay given up in making charitable donations (often Covid-19 related). As well as pay cuts, responses to the crisis have included the cancellation of 2020 bonuses, reductions or waivers of long-term incentive awards and substituting pay for shares. 

The motivation for such actions is that it is commercially and morally the right thing to do.

Our article, "Executive Pay – Building it Back Better?", considers whether these necessary but temporary measures could be the trigger for a permanent change to the quantum and composition of executive remuneration.

For further advice and guidance on how businesses can "Build Back Better" by focusing on moving towards a more sustainable business model at the same time as meeting increasingly stringent legal and regulatory obligations designed to promote the stakeholder capitalism agenda, please visit our Sustainable Business hub.

Key Contacts

Read Elissavet Grout Profile
Elissavet  Grout
Read Mahesh Varia Profile
Mahesh Varia
Back To Top