Will Financial Directors be Affected by Greater Transparency?
David Cookson talks to FinancialDirector.co.uk
FinancialDirector.co.uk quotes David Cookson on the potential impact that UK business secretary Vince Cable’s executive pay proposals could have on Financial Directors.
David Cookson of Russell Reynolds Associates believes that the transparency measures will have little immediate impact.
“Given the role that FDs now play as a partner to the CEO, they have to be comfortable having a City profile, so having their remuneration disclosed is nothing new,” he said. “It goes with the job.”
Cookson did point out, however, that for many FDs, particularly those outside banking, “Money isn’t the motivator when it comes to choosing a role, so whether any curbs on directors’ pay would affect them isn’t clear”.
“We’ve not heard of any FDs reacting negatively to this so far,” he added. “They might not be supportive, but there’s no uproar from the FD community over this issue. It’s also year-end at the moment so they’re probably too busy.”
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