Transparency, alignment and the impact on employees are all considerations when forming an approach to rising levels of executive pay.
In late 2015, ACCA published joint research with the UK’s Economic and Social Research Council (ESRC), which suggested that people valued "recognition at work" more highly than "pay", even though the two factors are closely related.
The research paper, Culture and Channelling Corporate Behaviour, identified—perhaps unsurprisingly—that people like to be recognised for what they do and rewarded accordingly.
This gives us some interesting food for thought around the debate on executive pay, where "rewards for failure" has been a recent topical theme. It is also one that was highlighted in the recent green paper discussion document
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