Asset Allocators' Soapbox: Why excessive CEO pay has to stop

Asset Allocators' Soapbox: Why excessive CEO pay has to stop

clock

Unnecessarily high senior management wages are a significant deal breaker when it comes to equity investing. Charles Heenan takes a look at some solutions...

Equities are an attractive asset class, particularly at a time when the world is travelling down its current unprecedented monetary path. However, there is no hiding the fact they are risky, having to face an uncertain future and constant change, as well as eternal competition.  One issue in particular that has developed over the past few decades to increase the risks associated with the asset class is excessive senior management remuneration, particularly that of CEOs. This continues to drain away returns from equities and, hence, decrease their attraction for shareholders.  The grow...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

PA360: 'Diversified approach has room for both active and passive' - David Coombs

PA360: 'Diversified approach has room for both active and passive' - David Coombs

‘Volatility is your friend if you are a long-term investor’

Jenna Brown
clock 01 May 2025 • 2 min read
PA360: FOMO can 'significantly' alter investors' risk appetite

PA360: FOMO can 'significantly' alter investors' risk appetite

Albemarle Street Partners’ Charlie Parker on the social element of investing

Isabel Baxter
clock 01 May 2025 • 1 min read
PA360: Investors must understand importance of 'proper diversification'

PA360: Investors must understand importance of 'proper diversification'

‘Investors don’t have to choose a single door’

Sahar Nazir
clock 01 May 2025 • 1 min read