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Good governance means having great people at the top looking out for the company. But how much should a company pay for a good director? In this TV show Caroline Newsholme discusses pay vs performance.
You should certainly pay for talent. And good directors come at a price. But there’s a feeling that directors remuneration is slightly out of kilter with the real world. It’s certainly being increasing, notwithstanding the fact that we are in a recession, there’s been a quite substantial upwards trend
And obviously a lot of companies have struggled and may not have performed as well. So there there’s an inconsistency between actually the wellbeing of the company and what the directors are being paid.
But I think certainly directors are alive to the concerns that have been voiced by investors and the business world generally. I don’t think they are blasé about the position, they recognise that there has to be a proper link between pay and performance and we can’t continue to see excess packages which are not really justified. Whether we’ll get change at the rate we need change is another question.
But there’s a lot of impetus in the corporate world to increase transparency and to change what’s gone before.
If you are interested in discussions around good governance take a look at our briefings on director's remuneration and board effectiveness.
If you are interested corporate governance issues take a look at our briefings on director's remuneration and board effectiveness.
Inside Finance TV will continue to follow ideas around corporate governance issues. Follow @InsideFinanceTV for more discussion. Watch the full briefing From the top – Ensuring board effectiveness as a director
Keep browsing Inside Finance TV for more expert insight into strategy development processes. Why not watch the full briefing From the top - Being an effective board director
Interested in informed financial planning? Why not explore more TV shows on Inside Finance?
Browse Inside Finance for more fantastic videos on business risk, and follow us on Twitter @InsideFinanceTV to have your say on the big business issues.
Attitude to risk may depend on the age of the client or the business. Younger people lean more towards risk, as Michael Pagliari explains in this TV show.
I think that goes back to sort of life cycle questions. As clients are younger and are looking to build assets they may well have a higher disposition towards risk and that might lead them towards more growth-type portfolios. As clients advance through that life cycle and perhaps sell a business or begin to retire then it’s really a question about draw-downs and inheritance tax planning and so on, and portfolios tend to de-risk to some extent. So as you grow through that life cycle portfolios do tend to sort of de-risk over time.
Inside Finance will continue to follow discussion on attitudes to risk and we have plenty more videos featuring experts from our channel partner Smith & Williamson.
Inside Finance will continue bring you expert insight in to business disruption and related topics.