How do you maintain your well-earned reputation as a competitive employer and, at the same time, comply with the new tougher public and regulatory expectations?
It is no easy task striking a balance between legal requirements and commercial pressures when putting together an effective remuneration package. The answer is that remuneration should be aligned with each employer's overall strategy, taking into account the level of risk that its stakeholders are prepared to accept. A well structured package will inevitably include a proportion of pay which is performance-related but this must be carefully designed to ensure that it is not excessive in terms of your business and there is no reward for failure. How is this achieved?
In considering this question, you will need to consider: (a) whether existing arrangements need to be changed; and (b) whether it is possible to change them.
