Reward Matters November 2011
Leadership special
Welcome to the sixth issue of Reward Matters, our magazine on recent developments in executive remuneration.
In our previous issue we focused on the recent developments as regards executive pay in Dutch AEX and AMX-listed companies. A clear move from a shareholder approach to a broader stakeholder approach and an emergence of corporate citizenship became apparent. Non-financial performance measures, in particular in the area of sustainability or ESG (environmental, social and governance), have been introduced in variable pay schemes. However, these measures have also faced their first scrutiny as being too boilerplate and questions have arisen as regards their measurability. Furthermore, public scrutiny as regards executive pay remains an lmost constant factor for all listed companies.
Getting it right remains, therefore, a challenge but more and more companies seem to have taken up this challenge. This requires that leaders have a clear vision of the company’s strategy and its corporate values and the ability to convey this to all stakeholders involved in a comprehensive manner. A tall order by all means, but also a crucial step in moving away from the current social, economic and political turmoil. We call this new style ”responsible leadership”.
In this issue of Reward Matters we elaborate on the concept of responsible leadership and the various steps organisations will need to take to achieve this. We aim to provide more insight on the challenges that you may encounter in this process and therefore address issues such as:
- The instruments of a responsible leader;
- Creating a vision and defining values;
- Using the code of conduct as a value driver;
- Embedding values using reward;
- How to strengthen your organisational culture; and
- Integrated reporting as a tool for stakeholder engagement.
