Xavier Baeten, Professor of Management Practice in Reward & Governance at Vlerick Business School, Fabian Meijs, CFA, Investment Analyst and remuneration expert at Triodos IM, and Chief Investment Strategist Hans Stegeman discuss the topic of executive remuneration and how the trend of excessive CEO pay can be curbed.
Their conclusion: CEO remuneration is a complex matter and needs to be curbed where it is excessive. Management boards, but also investors play an important role by encouraging balanced, transparent, and fair remuneration policies and practices, limiting excessive CEO remuneration and reducing the income spread in listed companies.
The role of the board and the remuneration committee is key. They should look at remuneration from a broad perspective, and not only from a market perspective, but also ask themselves: what about the moral perspective.
Executive remuneration - Enough is enough
Xavier, Fabian and Hans discuss the following topics:
- Inequality: How is it linked to executive remuneration
- Differences between different payment models
- Pay for performance: Which remuneration approaches lead to a better company performance, both financially and ESG-wise?
- Role of boards and finance in CEO compensation
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Executive remuneration - Enough is enough
Download our paper and find out how we, as responsible investors, can contribute to a more equal and fair income distribution.