The issues shaping the future of executive pay and bonuses will be discussed a debate on the first day of the Employee Benefits Summit 2013, which will be held on 25-27 June at Barcelo Asia Gardens Hotel and Spa in Alicante, Spain.
The panel will include Deborah Hargreaves, director at the High Pay Centre; Roger Barker, head of corporate governance at Institute of Directors; and Claire Morland, former head of compensation at Man Group.
In April, the government amended its draft legislation requiring listed organisations to hold binding shareholder votes on directors’ pay. this requires a 50% shareholder vote for pay proposals to take effect. the High Pay Centre has recommended employers should vote staff onto remuneration committees or boards.
Hargreaves said ahead of the Summit: “Most people on these committees are from similar backgrounds. they are all very comfortable with the idea of large payments, and can think in similar ways.
“Part of their remit should be to set pay in relation to what is happening in the rest of the company. We think it would be good to have an employee there to tell them that.”
Barker agreed there should be greater diversity on committees, but was not convinced employees should take a seat. “Our feeling is that remuneration is part of the overall strategy and needs to be integrated with the board’s overall activities,” he said.