2013: A year of restraint for executive pay

We ran a short survey at the end of 2012, against the backdrop of the current attention focusing on executive pay from shareholders, Government, regulators and the media, to find out what the impact of the environment was on the way you plan to reward the people leading your organisations.

The 2013 AGM season will be closely scrutinised by anyone with an interest in executive pay in the UK. Intense political pressure has been applied to shareholders and remuneration committees, backed up by new legislation on executive pay disclosure and a binding shareholder vote, due to apply from 2014. But will it make any difference?

Our survey of over 40 large companies (including approximately a third of the FTSE 50) suggests that it will – at least to some extent and at least in the short term.

Our videos summarise the main themes from the survey

 
Title of publicationVideo 1: 2013: A year of restraint for executive pay
Title of publicationVideo 2: Looking forward: the longer term impact for executive pay
Title of publicationVideo 3: Changes to reward structures - adopting the BIS disclosure regulations
 

Tom Gosling and Sean O'Hare take a look at the trends emerging from our latest executive pay survey. The results show that base pay and bonuses look set to be more restrained than in previous years - but what's the reasoning behind the patterns emerging from the latest pay rounds?

Looking at the results of both our 16th annual CEO survey and the views of reward professionals in our executive pay survey, there is a general dissatisfaction with the current state of executive pay. Perhaps most worrying is the potential impact on the attractiveness of the UK as a place for executives to come and work in the future.

How are companies reacting to the new regulations from the Department for Business, Innovation and Skills? With many of the participants of our executive pay survey looking to adopt some aspects earlier than required, we look at the issues arising and how businesses might overcome them.

 

Infographic of our results

2013: A year of restraint for executive pay

Our latest executive pay survey results. Some positive change will come, but will it make a difference in the long term?