Thursday, 12 July 2012
Pay & performance not connected in finance
Martin Arnold wrote in the Financial Times: "Yet what investors want is to link pay more closely to performance".But this is the nub of the problem. For a long time, & especially now,there has been a total disconnect between pay & performance. There has also been a total disconnect between rewards to senior staff & rewards to shareholders. It seems quite clear that the leaders of the financial services industry see themselves as guiltless in the mess that the rest of us find ourselves in and thus are entitled to carry on exactly as before. As long as that attitude persists no solution using existing 'business' mechanisms such as Martin Arnold discusses are possible.