High Pay Centre Launched to Monitor Pay at the Top

High Pay Centre Launched to Monitor Pay at the Top

Tuesday 31 January, 2012

As the public debate over executive pay continues, the High Pay Centre, a new independent body, has been created to monitor pay at the top.   

The Centre will carry out and publish research on top rewards, company accountability and business performance and communicate evidence for change.  To get to grips with the issues of high pay, corporate governance and responsible business it has set itself five questions which it will seek to answer as follows: 

• Is it enough to tackle rewards for failure, or is excess pay in itself a problem?  It will examine the ‘rewards for failure debate’ and ask whether it goes far enough;
• Can shareholders solve these problems?  It will ask to what extent shareholders are willing or able to hold the executive to account in the long terms interests of the company;  
• How much do other stakeholders matter?  It will seek to understand the role other stakeholders can play in the debate on executive pay and in the wider discussion on the behaviour of businesses;
• Is dealing with executive pay enough, or does top pay outside listed company boardrooms also need to be tackled?  It will explore what has happened to top pay outside the boardroom to see if this needs to be addressed; and
• What are the real social and economic effects of excessive pay at the top? It will seek to understand the wider economic, business and social implications of the dramatic shift in income distribution witnessed in the last 30 years. 

The Centre is headed up by Deborah Hargreaves, formerly the Head of the High Pay Commission which issued its final report on executive pay in November last year. 

For further information see the High Pay Centre Report: Making the Case for Business Reform