The High Pay Centre has today published a report titled Paid to Perform? What do we want our business leaders to achieve?: see here (pdf). The report presents an analysis of the information within the annual reports of FTSE100 companies with regard to the performance measures used for chief executives and makes various recommendations including the requirement that at least fifty per cent of performance related pay should be linked to non-financial metrics.The report found that the remuneration package for every chief executive was predominantly calculated using financial performance measures, with total shareholder return being one of the most popular measures. Thirty-eight companies stated that they assessed their chief executive's performance with regard to non-financial factors. Companies that had experienced recent serious reputational damage - such as BP and Barclays - had the largest proportion of non-financial measures linked to their chief executive's long-term incentive plan.
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