Sainsbury's is at the front of a campaign to make executive boardroom pay in Britain more simple and straightforward, theguardian.com reports.
David Tyler, the chairman of the supermarket group, has been installed on the board of the Investment Association. The members of this body are highly influential on the FTSE 100.
With regard to granting bonuses, it can often be difficult to ascertain the degree to which boardroom members have performed exceptionally, and the degree to which performances are products of forces and trends within the FMCG market.
Tyler stated, “Complex pay structures can make it difficult for investors and the wider community to judge whether high rewards are being earned for exceptional management performance or mediocre performance flattered by favourable external factors. This is an increasing source of reputational damage to business and of concern to investment managers.”
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.
