Problems remain with directors' pay, says IoD

6 November 2012

Commenting on this morning’s report from Incomes Data Services on directors’ pay at large listed UK companies, Simon Walker, Director General of the Institute of Directors, said:

“Very high levels of pay at the top of the UK’s largest companies damage the legitimacy of business as a whole. Most directors in the private sector earn nothing like FTSE salaries, and yet are often damaged by association. It is therefore welcome that top directors’ basic pay is not rising as fast as in the past.

“However, the level of pay in some cases remains excessive, and incentives are often not properly linked to the long-term fortunes of the company. Shareholders are the key. They have shown that their influence can control directors’ pay. Working with boards, shareholders need to make sure that directors are judged on a range of criteria that reward genuine long-term performance, not just on fluctuations in the stock market.”

ENDS

Contacts for further comments or to arrange interviews:

Mark Wallace
Head of Media Relations
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
+44 (0)20 7451 3263
+44 (0)7764 883 417
mark.wallace@iod.com  

Edwin Morgan
Media Relations Manager
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
+44 (0)20 7451 3392
+44 (0)7814 386 243
Edwin.morgan@iod.com

Notes to editors

  • The Institute of Directors (IoD) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with approximately 38,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
  • The IoD provides an effective voice to represent the interests of its members to key opinion-formers at the highest levels. These include Government ministers and their shadows, parliamentary committee members, senior civil servants and think-tanks. IoD policies and views are actively promoted to the national, regional and trade media. Follow us on Twitter to get the IoD’s reaction on business and public policy issues.
  • The IoD offers a wide range of business services which include business centre facilities, with ten UK centres (three in London, one each in Reading, Birmingham, Cardiff, Manchester, Nottingham, Norwich, Edinburgh, Glasgow and Belfast) and one in Paris, conferences, networking events, virtual offices, issues-led guides and literature, as well as free access to business information and advisory services. The IoD places great emphasis on director development and has established a certified qualification for directors – Chartered Director – as well as running specific board and director-level training and individual career mentoring programmes.



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