FSA Guidelines on High Earner Awards
FSA guidelines on high earner reward
Commenting on the FSA's new draft Code of Practice on executive remuneration in financial services, Charles Cotton, Reward Adviser at the Chartered Institute of Personnel and Development (CIPD), welcomes the new guidelines, but warns that all the elements of the reward package need to be addressed for real progress to occur.
"Further work is required to give meaning to these principles, as well as attention to other aspects of the reward package that have not been addressed by the code. The severance package, including pension arrangements, might have contributed to excessive risk taking in the City, not just the ‘extravagant or excessive incentives structures' as highlighted by the code. "The CIPD is currently developing a more comprehensive ‘good practice' guide on executive remuneration, which will address all elements of the total reward package.
Our principles are being created by reward practitioners for reward practitioners. They will reflect the challenges and ambiguities faced by those creating competitive packages, not just for the financial sector but for all sectors. The principles are aimed at those involved in designing and implementing executive remuneration packages in various settings."
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Created on: 05-Mar-09 15:09
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