Strategy and Remuneration Policy

28 April 2016

Trinity House

Legislation requires companies to produce a high quality strategic report for shareholders and a remuneration policy aligning executive remuneration to the long term success of the company. Yet in some organisations this relationship is not linear but circular.

The meeting will examine these relationships looking at best in class, current UK and international practices, and pick out the key issues on which companies should focus to build robust and value adding links connecting business objectives, strategy and remuneration policy.

Timings: 16.00 - 19.00

Very few companies derive their reward strategy identifiably from their strategic business objectives. Although legislation requires companies to produce a high quality strategic report for shareholders and a remuneration policy aligning executive remuneration to the long term success of the company, it is often difficult to discern the linkage. Yet in some organisations this relationship is not linear but circular, with resourcing and remuneration policies informing decisions as to the strategic direction of the company. We will examine these relationships looking at best in class, current UK and international practices, and pick out the key issues on which companies should focus to build robust and value adding links connecting business objectives, strategy and remuneration policy.

In setting the scene, we will describe how strategy definition and articulation now drive successful organisations and how this permeates throughout the business.

Andrew Campbell from Ashridge Business School will remind us of the elements of successful strategy development and implementation particularly looking at the juxtaposition of overall corporate strategy and the component functional strategies and how they relate. Drew Matthews, Partner at New Bridge Street | Aon Hewitt, will pick up the theme and share his thoughts on how remuneration policy is best developed in this context, and how key remuneration issues need to inform the initial strategy debate.

We will discuss:

best practice strategy development and value enhancement
pitfalls to be avoided
strategy communication and implementation
linking business strategy to functional strategy and facilitating feedback
A global perspective, what are the differences?

Turning to specific examples, we will be discussing case studies from a couple of companies making the link between theoretical concepts and practical realities.