Building bridges: what is best practice for structuring executive remuneration?

from CambridgeJBS Hosted by Cambridge Judge Business School

Is it shaped by social imperatives or should it be held as an economic negotiation? Dr Jonathan Trevor discusses this contentious issue, calling for an increase in transparency and more direct dialogue and consensus between shareholders and executives on what constitutes good governance as opposed to a reliance on using intermediary bodies: "We need to bridge the gap between the interests of shareholders and the interests of the executives. One size does not fit all and it is where we have seen prescriptive 'best practice' applied without contextual sensitivity, that we've seen the systems fail, with executives being incentivised for what amounts to bad behaviour with negative outcomes for the companies involved."