This year AHRI has produced a good report on Executive Remuneration, which has been approached from the perspective of how executive remuneration salary packages are determined both at the executive and board levels. The report looks at the role of HR in determining executive remuneration, incentives and termination payments, in additional to engaging external consultancies such as Hay and Mercer.
Some of the key findings include:
- 80% of respondents believe HR should be the main source of advice to the CEO, 63% to the board of directors
- 96% of respondents believe external consultants should not be the exclusive source of advice to the board of directors
- 78% of respondents believe HR advice on executive remuneration drawing on external expertise is the best model
- 92% of respondents believe boards should take a holistic view on executive remuneration, not simply rely on separate specialist reports
- 73% of respondents believe board members often have difficulty understanding the technical complexity of the advice they receive on executive remuneration
- 69% of respondents believe boards have a direct financial interest in decisions on executive remuneration
- 63% of respondents believe boards should publish market data and rationale on executive remuneration decisions.
You can download a copy of the Executive Remuneration report from AHRI online (PDF). Though the report is fairly long, the ‘Key Findings At A Glance’ and ‘specialist Respondent Findings’ offer the main takeaway points from the report and can be found on pages 4-6.
