What are you worth? Is worth for the person different from the position itself? In fact should we solely base any calculation upon making a distinction between the person and the position?
Is it fair to link an employee’s value to the organisation’s performance? For we all know of examples where there are so many external matters that influence the performance to make this meaningless.
Now what is our view about bonuses? Are they inherently beneficial or disastrous? When should a bonus be paid? And should there be an opportunity for a Board to ask a CEO to “hand back” money?
All of these questions are now very timely in the current climate.
Of course given the previous experience around setting remuneration, for many people there is not a lot of confidence that this current storm will deliver a good outcome. Can anyone see if regulating this area will improve how, when and what remuneration will be determined for them?
If it is not regulated, then should the power rest with the stakeholders to decide? Of course if the stakeholders are involved, will this be any better, or is the only real answer the establishment of a CEO National Award?
It is not so silly to suggest that at least a National CEO Award would offer a public benchmark or standard for remuneration. Perhaps even implement a policy where if someone is paid above this benchmark standard, then the directors must provide a written statement of justification for why this is so.
Do you think this could work, and if not what are the alternatives?
Damien Smith
Managing Director
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