This Note outlines some of the changes made to the structure, determination and publication of executive salaries, with particular reference to banks and other financial companies.Jump to full report >>
The level of ‘boardroom pay’; the way it is set; and its complexity, have become significant issues ever since the financial crisis in 2007. The way in which executives had been rewarded and the underlying incentives were seen as a contributing factor to this crisis.
General concern about ‘corporate governance’ and the widening gap between ‘top pay’ and that of ‘ordinary workers’ has meant that there is a wider interest in the determination of executive pay beyond the banking sector.
No single body or organisation has sole responsibility for regulating or reforming executive remuneration. As a consequence various streams of reform from different sources have affected the issue. This Paper gives a summary of the main changes introduced by the principal organisations and bodies since 2008.
Ity describes the main elements of the directors’ remuneration packages and provides information on the amount of these packages for the Chief Executives, Chairmen and highest paid directors of the United Kingdom’s five largest retail banks. It also includes details of the remuneration of the eight highest paid non-board member executives of these banks.
Commons Briefing papers SN06204
Authors: Tim Edmonds; Andrew Clark