Shareholders beware what you ask for when revolting over Board remuneration

Is a public forum such as an AGM the right place for shareholders to revolt over executive pay and what impact does this have on the confidence and focus of the executives affected? UK listed companies struggling to deliver growth in a market bereft of opportunity should be praised in many cases for their performance however mediocre. It is clear that most opportunity for these large corporates lies outside the UK which makes it every bit more important to ensure that your senior team remains focused and motivated.

Putting my HeadHunter hat on I would now suggest that the individual board members of Man, Aviva, AstraZeneca and Smith & Nephew et all are looking up over the parapet with a little more interest at organisations they might move to where their contribution would be valued. Public humiliation is hardly the best way to handle such sensitive debates over pay and rations and the recent flurry of shareholder rebellion over pay is frankly a disaster for anyone sitting on the Remuneration Committees of these organisations. They should be far more in tune with their respective stakeholders and protecting the brand of both the shareholders they serve and the executives they represent. 

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About

Nick has built a reputation over 15 years as a leading protagonist in the Interim Management industry. He has started, bought, rebranded and sold interim management businesses. He is now focusing his attention exclusively at Board and Head of Function level.

   

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