Fat-cat pay deals are seriously damaging the image of UK business, a report by MORI and the Investor Relations Society has found.
A large majority of City analysts and investors believe the reputation of big business is damaged by large pay-outs to City CEOs, while 94 per cent of those polled agreed that directors’ pay should be better linked to performance.
‘This influential group perceives a lack of credibility in the link between performance and pay,’ said Roger Stubbs, head of MORI’s investor relations practice.
Disclosure and transparency remain the essential factors central to effective communications with the financial community, as cited by 55 per cent of analysts and 59 per cent of investors. Availability of management and good communications are rated second.
GlaxoSmithKline, HSBC, Vodafone and WPP have all suffered due to controversial CEO pay deals during 2003.