Executive pay levels and public trust

Business leaders from across the UK say excessive pay for those at the top is the biggest threat to the reputation of business, according to research from the High Pay Centre.

The think tank surveyed 1,000 members of the Institute of Directors (IoD). More than half (52%) of IoD members identified “anger over senior levels of executive pay” as a threat to public trust in business.

Almost half (48%) either agreed or strongly agreed that falling trust in business was a significant threat to the success of their own company. However, a quarter (26%) said it was not important.

Only 13% of the IoD members said they were mainly motivated by financial reward; 54% said they were driven by a desire to build a successful company.

High Pay Centre director Deborah Hargreaves said the findings “destroy” the argument that criticising excessive executive pay is “somehow anti-business”.

“Outside the boardrooms of big corporations, ordinary small- and medium-sized business owners are as appalled by the culture of top pay as anybody else,” she added.

http://highpaycentre.org/blog/excessive-executive-pay-a-threat-to-business-say-institute-of-directors-mem