Rewards for failure sixteenth report of session 2002-03 report, together with formal minutes, oral and written evidence

House of Commons papers 2002-03 914

Format:

Corporate Author:

Great Britain Parliament House of Commons Trade and Industry Committee

Author:

ONeill Martin chairman

Publisher:

TSO (The Stationery Office)

Following on from a Green Paper published by the DTI earlier this year ("Rewards for failure: directors' remuneration - contracts, performance and severance", June 2003), the Committee's report examines the issue of very large severence pay deals or 'golden parachutes' for outgoing company executives of poorly performing companies, which has been the subject of media interest following a number of recent high profile cases. The report considers the three main options for possible remedies to the problem of rewards for failure which were proposed by the Green Paper, relating to reductions in contract and notice periods; liquidated damages; and phased payments. The Committee finds that, whilst directors of large companies should be able to expect remuneration commensurate with the level of responsibility they have and the relatively precarious nature of their employment, they remain unconvinced that the current scale of severance packages is a product of competition for scarce talent in an international market. As such, it would appear that executives have been rewarded not only for success but for failure as well.

Extent	21, Ev 88p.	ISBN	9780215012906
Size	N/A	Price	£14.50
Format	Paperback	Published	26 Sep 2003
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