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Consider stakeholder’s interest in directors’ pay

Consider stakeholder’s interest in directors’ pay


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Consider stakeholder’s interest in directors’ pay

The recent KPMG Report on Non-Executive Directors’ Remuneration 2017 is quite revealing. The report reveals financial sector NEDs received the highest pay. This, says KPMG, is due to high level of regulations imposed on banks, implying that the job of directors is very onerous and stressful.

There is no argument on whether the job of director is stressful or otherwise. But surely, some KPIs must be attached to their remuneration beyond merely providing shareholder value to the company. Going beyond shareholder value to include stakeholder value would impress upon the board to ensure it also looks into creative ways to preserve jobs while increasing corporate productivity.

Directors should also be rewarded on how many jobs they preserve, while increasing corporate productivity and efficiency.

Read full article here.

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