Keeping an eye on pay

Keeping an eye on pay isn’t just about bonuses. It is – or should be – about alignment of management interests with those of the long-term investor

Greater transparency on top-level pay scales has led to a culture where executives chase the pay rates of their peers, leading to salary inflation Thinkstock
Greater transparency on top-level pay scales has led to a culture where executives chase the pay rates of their peers, leading to salary inflation Thinkstock

Pay and bonuses are invariably at the centre of media and public attention when well-known companies report their results.

Many years ago legislation was introduced requiring full transparency of individual salaries, bonuses and benefits for all company directors – the intent being to ensure that excesses would be clamped down ...