Thursday, 13 June 2013

"Sensitive to pay and condition..." once more

I've blogged previously about the way that companies routinely fail to apply the bit of the UK Corporate Governance Code that says that rem comms should "be sensitive to pay and employment conditions elsewhere in the group, especially when determining annual salary increases."

Well, if I didn't just stumble across evidence of this in the words of a company itself. Being the sad man that I am, I was recently trawling through company responses to the BIS discussion paper on exec pay that led to the incoming pay reforms. I was specifically looking for views on the idea of employees on rem comms. And in one company's response I came across this as one of the reasons why this would be A Bad Idea -
Difficulty in preventing other employment issues affecting the discussions.
So the Code says that rem comms should be sensitive to "pay and conditions", but a company is worried that employee representation would lead to "other employment issues affecting [rem comm] discussions".

When I  get a bit more time I'll see if I can find some more like this.

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