Over lunch, the distinguished chairman of a FTSE-listed company explained to me how pay ratcheting works. “When I took over, the company was ranked 125 by size, after two years it was in the top 100 and at our best we were the UK’s 45th largest company. That was when the consultants appeared, pointing out the relative pay of similar-sized companies, and the CEO came to see me saying he was “very worried about the team”. Deals get struck reflecting this high water mark and are not usually unwound if the company slides down.
0 thoughts on “Executive Pay Needs Reforming to Spur Business to Long-term Growth”
Comments are closed.