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Underperfomance related pay

Chris Roebuck challenges NEDs to demand more

It has always been a key challenge for businesses to motivate their senior management teams correctly. The default incentive for financial services firms has been very generous remuneration packages, but is the criteria under which organisations award these large packages to their senior teams strict enough?

Not according to Chris Roebuck, Visiting Professor of Transformational Leadership at Cass, who believes that non-executive directors need to be much tougher with their management teams. In this week's Cass Talks Professor Roebuck argues for NEDs to provide more challenging goals and only reward truly exceptional performance.

Professor Roebuck also highlights the large disparity between the median pay in an organisation and the pay of the CEO which often bears little relation to performance: "In FTSE 100 companies CEOs are frequently paid eighty-eight times the median salary of their firm and in financial services twice that. Does this mean that CEOs at financial service firms are twice as good?"

Hear Professor Roebuck expand in his thought in this week's Cass Talks. These interviews are an opportunity to hear Cass faculty and prominent alumni give their perspective on current business and finance news stories, global issues affecting the business world and new research coming out of the School. Listen, watch and download Cass Talks and see other Cass academics share their opinions at:

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