An opportunity for honest and open communication in Executive Remuneration Reporting
08 March 2018
Insights from PwC’s Building Public Trust in Corporate Reporting Awards 2017:
Executive Remuneration Reporting in the FTSE 350
Disclosures on executive remuneration are an area of corporate reporting that’s scrutinised closely by regulators and a wide range of stakeholders. As our assessment of this year’s FTSE 350 reports has underlined once again, this scrutiny causes many companies to focus on ticking the right boxes rather than telling a clear story.
This year we’ve fine-tuned the assessment criteria for the award to place a greater emphasis on companies’ reporting on their societal contribution and impacts. This perspective casts a useful light on their executive remuneration disclosures, especially given the current debate over the introduction of reporting “pay ratios” comparing the CEO’s remuneration with that of the average employee.
As the judges for this award noted, such a change could point to a move away from disclosing “executive remuneration” and towards more holistic reporting of “remuneration” across the business. They added that what’s really needed to build trust is a more open approach to reporting on wealth creation for individuals, and better linkage between that wealth creation and the delivery of the business’s strategy.
The nominees for this year’s award have made good progress towards these goals – but the reality is that all companies still have further to go. To see what the leaders in executive remuneration reporting are doing right, I urge you to click through and read the judges’ comments.
And if you’d like feedback on how your organisation scored in this year’s assessment of reporting on executive remuneration, please get in touch by sending an email to [email protected]