It is appropriate that executive and director remuneration be in no small part anchored to individual and business performance, and the delivery of enduring shareholder benefit.
When businesses are forced to operate in upset conditions for an extended period of time, as has been the case with COVID, all director and executive pay should be on the table. There are examples around the world where such reviews have appropriately occurred with some executives absorbing up to 50% salary reductions.
One would consider such reviews of greater import where shareholders were being asked to accept COVID as the majority root cause of continued business (and therefore the Board and executive) underperformance.
ESH Price at posting:
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