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    Executive pay: financial incentives damage long-term profits

    The more focus companies put on financial incentives for CEOs’ bonuses, the worse the firm’s commercial performance, according to a study of Europe’s top 600 firms. Research from Vlerick Business School in Ghent, Belgium, found that high pay and incentives such as bonuses and share-related incentives was an effective way to boost firm’s profitability, but […] More

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    FTSE 100 CEOs earn average annual wage in just 34 hours

    Pay for CEOs is around 120 times that of a typical worker, according to the High Pay CentreShutterstock The median FTSE 100 CEO’s earnings will surpass that of the median annual wage for a full-time worker in the UK by the end of the working day today (6 January), the High Pay Centre claims. The […] More

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    Bonuses in the Covid-19 era: pushing the boundaries

    Photo: Shutterstock Changes to bonuses, as businesses are impacted by the pandemic and Brexit crises, could well lead to tensions and legal cases, writes Ivor Adair Bonuses can be an effective business tool to incentivise, acknowledge and reward good performance. A bonus can also correct overall remuneration in the context of a shifting market benchmark. […] More

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    Average FTSE 350 CEO earns 53 times more than median employee

    Ocado Group CEO Tim Steiner Imagewise Ltd/Shutterstock The average FTSE 350 CEO is paid 53 times more than their average employee, analysis of executive pay ratio reports has discovered. Eighteen per cent (36) of FTSE 350 organisations play at least a quarter of their employees less than £20,000 per year on an FTE basis, according […] More

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    Third of FTSE 100 firms use employee metrics to calculate CEO bonuses

    Shutterstock Just one third (34%) of FTSE 100 organisations use employee-related metrics when calculating executives’ performance-related pay, which is still overwhelmingly based on hitting financial targets. This is according to the High Pay Centre and the CIPD, which found that for every pound a FTSE 100 CEO could earn for meeting an employee-related metric, they […] More

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    Disney to axe 32,000 jobs as theme parks reel from Covid

    Photo: Shutterstock About 32,000 jobs at Walt Disney are set to be axed by the end of March as the entertainment giant’s parks, resorts and cruise businesses continue to lose millions of dollars because of Covid-19. The company had already announced plans to cut about 28,000 jobs in September, a move that drew sharp criticism […] More

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    Executive pensions face tighter clampdown from investors

    Sainsbury’s new CEO Simon Roberts receives a 7.5% pension allowance, compared to 30% for his predecessorPhoto: Sainsbury’s Investors are clamping down further on executive pensions after the Investment Association updated its pay guidelines for companies. Board directors have often profited from superior pension packages with pension contributions set considerably higher than for the wider workforce. But, […] More

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    CIPD ACE: Focus on listening skills to encourage ‘speak up’ culture

    Leaders need to ensure they are approachable Photo: Shutterstock To create a true ‘speak up’ culture, organisations need to stop trying to fix individuals’ behaviours and focus on how leaders listen to employees, according to a leadership and organisational dialogue expert. Speaking on the second day of the CIPD’s Annual Conference & Exhibition, Megan Reitz, […] More