Linking exec pay to shares

Company directors are being increasingly pilloried in the media over the size of their pay packets but there could be a way to silence the critics

There is no issue that excites people as much as their own pay. For that reason, the past few months have been an interesting time for directors of UK companies. It has been virtually impossible for them to open a newspaper without seeing their wages, or at least those of their peers, put under the microscope. At GlaxoSmithKline, chief executive Jean-Pierre Garnier has seen his contract voted down by shareholders. Several big companies, including HSBC Holdings, Tesco, and Prudential have been in trouble over contracts awarded to directors. This month, UK trade secretary Patricia Hewitt...