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Executive reward research report by CIPD in partnership with Lane4

Insight

22 December 2015

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The CIPD have released their latest research report on executive reward.

We are delighted to announce that our Head of Research, Dr Zara Whysall, was a key figure in this research and partnered with the CIPD to produce the final report. Along with Birkbeck University, Paydata UK and Lane4, the CIPD have focused on chief execs pay and rewards and how this is creating a gap between boardroom and workforce, ultimately demotivating staff.

 

The report specifically looks at the factors that have contributed to FTSE 100 CEO pay increasing to 183 times that of the average employee, compared to 47 times in 1998. The challenges that are discussed in the report include:

 

  • A lack of transparency over CEO pay and how it relates to the wider workforce

  • Overly complex performance measures and how they can be changed

  • The need for rewards that are appropriate for the organisation and individual in question and the lack of knowledge, skills and influence to make this change

  • Powerful personalities negotiating more money to rank higher amongst their industry peers rather than striving for industry recognition or impacting wider societal goals

  • More focus on promoting shared or distributed leadership rather than focusing on key individuals ‘at the top’

The report recommends a fundamental re-think to CEO pay and outlines ways in which organisations need to change in the future. 

Download the report here

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