London, May 30 (ANI): A new British study has revealed that the pay deals of top chief executives are not linked to the performance of their firms.
It said that while the average remuneration of bosses of companies on the FTSE 100 index rose 32 percent last year, the index itself increased just 9 percent.
Remuneration committees were struggling to stay independent, said report co-author and business consultancy MM and K.
It added that pay deals for bosses were too short-term focused.
The report also found that over the past 12 years, some share prices had not increased, but pay deals for chief executives had quadrupled.
The study also welcomed a move towards Long Term Incentive Plans (LTIPS), linking share bonuses to the long-term performance of a company.
The report came days after HSBC bosses had to face shareholder anger over high executive pay at the bank's annual general meeting.
A fifth of the HSBC shareholders had refused to back the bank's remuneration plan for senior staff.
"Shareholders are increasingly looking for more aggressive strategic target setting," the BBC quoted Sarah Wilson, founder of governance agency Manifest, which also co-authored the report as saying.
"There is a level of frustration that remuneration committees are developing a tin ear and don't see high levels of voting dissent as something to be concerned about," she added. (ANI)
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