Article 18 Nov 2011

Remuneration of directors and executives: transparency, fear and shame

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One of the most morbid aspects of the international economic recession is the remuneration received by board members and senior executives. Some social partners have recently criticised the “disproportionate remunerations” paid to the upper echelons of the financial sector, qualifying them as the “antithesis of what is socially responsible”.

After overcoming the occultism and secrecy for the sake of good governance, there was a sweetener phase. But now we are in the age of fear and shame.

With this article we reflect on the communication of compensation policies, a subject in the field of corporate governance where ethics and good professional practice collide because of the times we are living in.

Juan Rivera, Partner and Managing Director LLORENTE & CUENCA Mexico

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