Executive Remuneration and HR Trends with Alison Kidd

Last week, FWB opened its doors and welcomed guests to our first event of 2024, hosted by Alison Kidd, an experienced Reward Director and Advisor and now a Partner with FIT Remuneration Consultants (the UKs largest independent remuneration adviser). Our guests, representing a wide range of sectors, engaged in a lively discussion and shared their insights and challenges from their own organisations. Alison opened the session with a striking statistic: by 1pm on the 4th of January, the average FTSE 100 CEO has already earned more than the average worker for the entire year -and the conversation flowed from there.

Subsequent discussions quickly delved into executive compensation make up and targets, incorporating ESG, innovation, and D&I as priorities. Special emphasis around ESG was mentioned, as the UK is arguably leading from the front due to strong governance and compliance in comparison with other countries. When looking at board compositions, we still have a long way to go. Keeping executive-level long term targets simpler was suggested, as they often become complex and difficult to understand.

The conversation quickly moved to the hot topic that is still hybrid working, the ongoing discourse in various sectors, and the impact that this is having on productivity and goodwill. It was noted that conflicting opinions exist amongst different demographics of the working population -it doesn't seem that we have arrived at a simple solution to this, however, there continues to be a demand for hybrid working from the workforce.

Deliberations on pay transparency were debated. Having open and honest conversations with your workforce appeared positive; however, challenges among workforce expectations is still problematic. A resurgence of bonuses to pre-pandemic level was highlighted.

Lastly, the important topic of financial wellbeing was considered. Companies offering tools like educational sessions, flexible benefits and confidential consultations but also having more creative solutions, including the 4-day workweek, were explored to address talent shortages.

In summary, it was an enjoyable afternoon spent over lunch and discussion with Alison and our network, looking at the current landscape of executive compensation and HR trends and how we are navigating these challenges. FWB extends our thanks to Alison Kidd for hosting the event. In-depth information and regular briefings on proposed changes in the executive pay landscape can be found on the FIT website.

Lindsay Cramond; Jaclyn Needham; Laura McDonald