We examine how UK listed companies set executive pay, reviewing the implications of following best practice in corporate governance and examining how this can conflict with what shareholders and other stakeholders might perceive as good behaviour. We do this by considering current governance regulation in the light of interviews with protagonists in the debate, setting out the dilemmas faced by remuneration-setters, and showing how the processes they follow can lead to ethical conflicts.Current ‘best’ practice governing executive pay includes the use (...) of market benchmarks to determine salary and bonus levels, significant levels of performance-related pay, the desire for executives to hold equity in their companies, the disclosure of total shareholder return compared to an index, and a perceived need for conformity, in order to grant legitimacy to policies. Whilst each of these may in some circumstances lead to good practice, each has the potential to cause dysfunctional behaviour in executives. Overall, we conclude that although best practice might drive good executive behaviour that coincides with the company’s and key stakeholders’ objectives, there are many reasons why it should not. (shrink)

We examine how UK listed companies set executive pay, reviewing the implications of following best practice in corporate governance and examining how this can conflict with what shareholders and other stakeholders might perceive as good behaviour. We do this by considering current governance regulation in the light of interviews with protagonists in the debate, setting out the dilemmas faced by remuneration-setters, and showing how the processes they follow can lead to ethical conflicts. Current 'best' practice governing executive pay includes the (...) use of market benchmarks to determine salary and bonus levels, significant levels of performance-related pay, the desire for executives to hold equity in their companies, the disclosure of total shareholder return compared to an index, and a perceived need for conformity, in order to grant legitimacy to policies. Whilst each of these may in some circumstances lead to good practice, each has the potential to cause dysfunctional behaviour in executives. Overall, we conclude that although best practice might drive good executive behaviour that coincides with the company's and key stakeholders' objectives, there are many reasons why it should not. (shrink)

Bender, Robert Review of: Blasphemy, by Asia Bibi with Anne-Isabelle Tollet, Virago, 2012 137 pages.

Bender, Robert Review of: Bad science, by Ben Goldacre, 2008, Harper/Collins 370 pages.

We examine how UK listed companies set executive pay, considering the implications of following best practice in corporate governance and how this canconflict with what stakeholders might perceive as good behaviour. We do this by presenting the results of 40 interviews with protagonists in the debate, setting out the dilemmas faced by remuneration-setters, and how the processes they follow can lead to ethical conflicts. Overall, we conclude that although best practice might drive good behaviour, it often does not.

Bender, Robert Review(s) of: Divided we stand: Why inequality keeps rising, by OECD report, 2011.

Bender, Robert Review of: Epicurus and apikorsim, by Yaakov Malkin, Library of secular Judaism, 2007. 170-pages.

Bender, Robert Review of: Ether day: The strange tale of America's greatest medical discovery and the haunted men who made it, by Julie M. Fenster, Harper/Collins, NY, 2001, 278 pages.

Bender, Robert Review of: Income inequality, equality of opportunity and intergenerational mobility, by Miles Corak, Institute for the Study of Labor, Bonn University, 2013, 32 pages.

Bender, Robert Review of: In the public interest: 150 years of the Victorian Auditor-General's office, by Peter Yule, 2002, VAGO, 304 pages.

Bender, Robert Review of: The other side of Israel: My journey across the Jewish-Arab divide, by Susan Nathan, 2005 Harper Collins, 300 pages.

Bender, Robert The USA constitution does not have a clause requiring any separation of church and state and until 1948 there were no Supreme Court rulings to ensure that this was seen as a basic constitutional principle. Then in 1945 Vashti McCollum, a 33-year-old part-time squaredancing teacher from Champaign, Illinois, initiated a legal action that changed all that.

Bender, Robert Review of: Women in Cambridge: A Men's university - though of a mixed type, by Rita McWilliams-Tullberg, Gollancz 1975, 255 pp.