New research has come from the CIPD and it is shining a light on a new executive pay package. Reforms are needed to sustain the link and to also play a part in sustainable performance too. Of course, it should be noted that the UK is going to be a key part of this.

The UK's biggest publicly listed companies pay at least £2.08 billion to their key management personnel. They also highlighted the fact that FTSE 100 CEO's earn 117 times more than an average worker in the UK. In other words, it will take a year for an average worker to earn what a FTSE 100 CEO earns in three days.

The report also highlights concerns that relate to labour jobs and the way that corporates report the pay. The main reason for this is because executive pay is often disconnected from the main reward strategy of the organisation. This includes HR teams as well, which should be noted for those who work in labour recruitment. The gap between executive pay and the rest of the workforce in general is damaging to individual businesses and even societies too. For this reason, it is firmly on the government's radar. As of April next year, regulations regarding executive transparency are going to come into play.

Executive pay is designed to incentivise and even reward longer-term performance. Evidence on the other hand is suggesting a huge disconnect between the CEO and their performance in general. There have been some assumptions made that need to be challenged. They are using shareholder returns as the only blunt measure of success and the price rises happen to be related to the economic factors too. The government are working hard to make sure that something is done about this.