“It’s very positive that the government is taking measures to make companies justify how much they pay their chief executives. High executive salaries and bonuses have attracted public criticism for many years. However, workers aren’t simply angry because bosses are highly paid; it’s because often executive bonuses are awarded without any clear link to value. Moreover, while bosses receive huge bonuses, many workers in the UK don’t have access to any kind of variable pay, despite one in four workers stating that a financial bonus is their main motivation.
“Bonuses are an extremely powerful tool for motivating workers and improving productivity, if they are used in the right way. As a country, we must move from the old-fashioned salary economy to the performance economy: rather than paying people based on their position and tenure, employees must be rewarded for their output – from bosses right the way through the organisation. If there’s a clear and visible link between achievements and compensation throughout the organisation, from the bosses right the way down, then executive pay packets will b