ABSTRACT
A number of factors make this an opportune time to address the topic of directors’1 remuneration. First, corporate governance is now enjoying sustained attention, and the issue of how, and how much, directors should be paid is central to this wider governance debate. A second factor is concern at the recent steep upward trend (rather than the absolute level) of directors’ pay,2 a trend which has been the subject of a near running-commentary in much of the press. This concern has been compounded by a general perception (supported by some empirical evidence)3 that large pay increases have too often accompanied poor company performances. Thirdly, if we should be concerned about growing inequality within our society,4 then the growing disparity between the rewards earned by directors and those earned by other workers seems to demand our attention.5
