Decisions need Fut coins to take into account the specific financial context in which a company operates, their goals, and their performance against targets. But, pay decisions need to be consistent with the best interests of the company and its shareholders, and in line with the stewardship and fiduciary responsibilities of the directors making the decisions on pay.
Board pay in recent years seems to have lost touch with these guiding principles; the link between pay, performance, and shareholder value has become blurred in some cases. If it can be done with flexibility, giving the shareholders the right to approve company plans on pay would be a logical extension of their ownership role and could prove to be a positive force for pay discipline |