Like many corporate practices, executive remuneration is driven by convention. Without a viable alternative, supervisory boards stick with the same incentives they’ve always used.
A preliminary study commissioned by Reward Value to SEO Amsterdam Economics confirms an over-reliance on short-term financial measures in remuneration as a proxy for long-term value creation. The resulting pressure on CEOs to maximise short-term profits undercuts long term financial performance, stifles progress on environmental and social goals, and threatens the long-term viability of the companies they lead. An overhaul of remuneration conventions is overdue.
Reward Value contributes to the modernisation of financial rewards by developing policy through its research arm and supporting practical implementation via its consulting arm. Acting from an analytical, factual, independent base, Reward Value involves a wide range of stakeholders to develop its recommendations.
Recognizing it will take alignment of all our organizations to scale impact globally, we invite you to join the movement as a Steward of Inclusive Capitalism. Together, the collective action of Council members will contribute to a fairer, more inclusive and sustainable future for all people and our planet.