A recent CIPD report suggests there are many explanations for why executive pay has increased so much over the last few years, including the increasing sophistication of companies in a global economy and weak remuneration governance in a few companies, which can lead to a knock-on increase in pay in other organisations.

Executive pay packages are becoming increasingly complex, with more pay being deferred and incentives being made up of share options and performance based shares. Such packages are weighted towards rewarding output rather than focussing on motivation and input (such as executive behaviours), as well as an organisation’s values and culture.

Do you think we need a fresh approach to the way in which executives are rewarded, focussing less on output and more on motivation and organisational values?

See the full CIPD report here:
http://www.cipd.co.uk/binaries/Executive{ba3215b0bf35eaeb06be458b3396ffbfc50bb9db10c9ff1594dfc3875e90ea48}20reward{ba3215b0bf35eaeb06be458b3396ffbfc50bb9db10c9ff1594dfc3875e90ea48}20(booklet){ba3215b0bf35eaeb06be458b3396ffbfc50bb9db10c9ff1594dfc3875e90ea48}20WEB.pdf