The Importance of Transparency in Executive Pay

Writing in the Financial Times, Professor Guy Jubb argues better transparency doesn’t necessarily have to mean more transparency. Pointing to the abundance of information now available to institutional investors on executive remuneration, he says further focus on the issue risks fanning public ire, without addressing the underlying causes of the problem.

Jubb suggests more consideration should be paid to integrating transparency into the culture and decision making of remuneration committees, their advisors and staff throughout the organisation. This, he suggests, will create better, fairer and more understandable remuneration reports to help change behaviours and ultimately create more alignment between pay outcomes and the public interest.