Employee Rewards and Benefits News
CIPD launches new guidelines for pay and reward
New guidelines from the Chartered Institute of Personnel and Development (CIPD) have underlined how executive pay packages should never lead to inappropriate risk-taking.
Reward experts have joined forces to put forward ten principles for the organisation, which aims to respond to the recent "furore" from the general public over banker bonuses.
Charles Cotton, an adviser at the CIPD, said there has been an "awful lot of heat and not a lot of light" in the row over bonuses and executive pay up to now.
The expert opined: "Unfortunately, the issue degenerated into a slanging match around how much executives earn, rather than about what organisations need to consider to ensure that the way they reward their executives supports the needs of the business."
New guidelines will also address the role of pensions, with contractual commitments to enhance executive pensions being discouraged and only entered into if reputational risk and long-term costs are recognised.
Last week, the CIPD outlined the impact which swine flu could have on workers this autumn and winter, stating that UK businesses need to prepare for staff absence rates of up to 50 per cent for periods of between two and four weeks.
Written by Matt Gardner
