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Luke Hildyard Head of Research, High Pay Centre Presentation to AMNT: Why executive pay should matter to investors. www.highpaycentre.org www.twitter.com/highpaycentre. The direct business case. High pay ratios demoralise employee base – more conflict, more costs, less productivity
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Luke HildyardHead of Research, High Pay CentrePresentation to AMNT: Why executive pay should matter to investors www.highpaycentre.org www.twitter.com/highpaycentre www.highpaycentre.org
The direct business case • High pay ratios demoralise employee base – more conflict, more costs, less productivity • Massive pay attracts the wrong people – creates false sense of invincibility • Lavish pay policies lead to poor performance, poor decisions, poor value for shareholders www.highpaycentre.org
The indirect business case vs • Exec pay sets benchmark for top pay for top managers across the economy • Inequality resulting from excess exec pay creates major social and economic problems • Business culture based on huge inequality is not sustainable www.highpaycentre.org
Fairness and Proportionality • Wealth is created collectively – efforts of the entire workforce & wider economic context • The talent myth – no international market for CEOs; internal hires perform better • Market failure – FTSE 100 CEO earns more in a year than a surgeon in a lifetime www.highpaycentre.org
