Survey finds strong support for greater shareholder involvement in setting CEO remuneration
Two-thirds (67%) of business leaders around the world say that shareholders should have greater involvement in establishing remuneration policy for senior executives at large public companies and 66% believe that senior executives are paid too much, according to a global survey of 2,800 businesses in 40 countries.
According to the research, which was carried out as part of the quarterly Grant Thornton International Business Report*, more than three-quarters (77%) say that public companies should disclose the remuneration policy and individual remuneration of executive and non-executive directors and 80% believe that the roles of CEO and Chairman of the Board should be held by different people to ensure greater oversight. Ninety per cent felt that executive remuneration at public companies should be closely linked to performance targets.
Peter Gomersall of Grant Thornton in Yorkshire, comments: “These are turbulent times for senior executives within both public and private businesses. The call for more transparency about the amount and, possibly more importantly, who decides the remuneration of senior executives, is continuing to gain momentum.
“These results clearly shows that there is an increased appetite for shareholders to be involved in the determination of executive remuneration and reward although it is very difficult to predict how this will evolve in practice."
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