Disclosure on executive remuneration plays a critical role in enabling shareholders to engage effectively in the process of setting pay. Done well, it can offer invaluable insights into the background to and rationale for executive remuneration.
This award recognises high-quality remuneration reports which don’t shy away from the difficult issues, and which make the rationale for key decisions clear. They will offer a clear explanation of how remuneration policy in the company exemplifies good practice, and will make explicit the link between remuneration, strategy and the long-term interests of shareholders. They may also disclose any remuneration targets that were set and explain why those targets were felt to be appropriate, and describe how external economic considerations are factored into remuneration policy and practice.
The judges in this category are looking in particular for those reports which are transparent, which describe the relationship between organisational culture and remuneration policy, and which show innovative thinking in this most difficult of areas.
Severn Trent Plc
The Weir Group PLC