P&O global research: ‘The Ethics of Incentives’

PwC is working with Professor Alexander Pepper and Dr Susanne Burri of The London School of Economics on a ground-breaking global study into the ethics of incentives and the fair distribution of income in society.

As a senior business leader, we would very much value your contribution to this piece of work. Our survey takes a maximum of 20 minutes and includes questions which are designed to investigate the complex views we all have about pay fairness. Please click on the link below:

Survey

Please submit the survey by Friday 20th January 2017.

All responses will remain confidential – but there is an option to sign-up for an advance copy of the findings if you so wish.
I hope you will find the time to contribute.

Contact:
Dr. Robert W. Kuipers
PricewaterhouseCoopers AG
Birchstrasse 160, 8050 Zurich
Switzerland

Email: robert.kuipers@ch.pwc.com
Phone: +41 58 792 4530

If you have any questions, please write to us at SurveyAdmin@us.pwc.com

Executive Compensation & Corporate Governance: Insights 2016

Executive Compensation: Focus on Performance and Communication

Since 2007, managers’ pay at SMIM constituent companies has been closing the gap with the remuneration earned by executives at SMI companies; and it is outpacing the rate of increase at small caps. Share-based compensation is becoming a more important factor at large- and mid-cap enterprises. Variable compensation goes up if the company has performed well – and it decreases when the results are poor. Communication with shareholders has gained in significance. These are the findings of the study entitled “Executive Compensation & Corporate Governance: Insights 2016” conducted by PwC Switzerland.

Read the online version of the study here.

 

Portrait of successful senior businesswoman standing in factory shopfloor with digital tablet

You can find more information here.

Ordinance on excessive pay: lessons learned from daily practice

Implementation of the Ordinance against Excessive Compensation (VegüV/ORAb) is progressing well. Find out more about key experience in practice, and read how a balanced say-on-pay system can strengthen a company’s value creation.

Topics of the article

  • More work for AGMs
  • Election of compensation committees and say on pay
  • Information needs for say on pay

Read more here.

Summary

Compensation per se might be less important than issues such as capital structure and dividend policy (which for their part are closely tied to the organisation’s growth strategy), but we’re convinced that systematically implementing a balanced compensation system is a strategic factor in the success of a company.

The new regulatory environment places great demands on everyone involved. For the board of directors and management of listed companies, preparing for say-on-pay votes – in other words drawing up a meaningful compensation report, documentation and arguments for the motions for shareholders – requires a lot of work. Despite this, companies benefit if they adopt a holistic approach, involving human resources, legal, finance and the board of directors at an early stage of the proceedings. A successful say-on-pay system has to be grounded in value-based management and reflected in value reporting. That way it can help management, shareholders and other stakeholders get a uniform understanding of the challenges faced by the organisation and the factors in its success. Ultimately this consensus will result in better, value-creating decisions.