PROs urged to push for ‘fairer’ CEO pay

The Daily Telegraph City editor Neil Collins has called on financial PROs to tell their clients to rein in rampant executive pay and adopt a reward system for CEOs more closely linked to stock-market performance.

Speaking at the IPR Corporate and Financial Group’s annual dinner at the Royal Commonwealth Club last week, Collins criticised what he called the ‘iniquitous’ arrangements through which CEOs receive generous pay and severance deals while rank-and-file workers suffer pay cuts.

Collins said he sympathised with trade union calls for restraint on executive pay and suggested it was time for shareholders to press non-executive boards to adopt a performance-related pay scheme for CEOs through the use of a derivatives transaction.

By this method, CEOs would invest a large sum of their pay or bonuses into the stock derivative, effectively betting their bonus on the performance of their company.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Latest Articles

Growing number of clients plan PR budget increases

Growing number of clients plan PR budget increases

The number of marketers planning to increase their PR budgets during 2014 has climbed, according to the latest quarterly Bellwether survey by the Institute of Practitioners in Advertising.

Max Clifford trial jury to continue deliberations tomorrow

Max Clifford trial jury to continue deliberations tomorrow

The jury in the trial of celebrity publicist Max Clifford has been sent home after a second day of deliberations about its verdicts on 11 charges of indecent assault.

Champagne producer Charles Heidsieck appoints Story PR