Executive remuneration research centre

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Executive Remuneration: a highly relevant management topic!

Now more than ever, there are important challenges to be faced in the field of executive remuneration.

• The financial crisis has given rise to serious concerns about the design and governance of executive remuneration. It is a significant challenge to develop variable remuneration policies that integrate principles of long-term and sustainable growth, rather than just rewarding short-term financial performance.
• The alignment of remuneration policies with the nature and context of the company is still a huge challenge for everyone involved in decision-making and the design of executive remuneration.
• There is a need to develop remuneration strategies, policies and systems that are successful in ensuring motivation and horizontal and vertical equity, but that also serve as a tool for management control.
• There is demand for better insights into issues including the behavioural outcomes of different remuneration tools and systems, interpretation of market data, positioning, executive performance measurement, etc.

From research to practice

To respond to these and other challenges in the field of executive remuneration, Vlerick Leuven Gent Management School has established the Executive Remuneration Research Centre. The aim of this centre is to develop academically valid and practically relevant research on the following subjects:

• Executive performance measurement and management as a foundation for executive remuneration:
  Tools and concepts, developing the right value drivers/measures, evaluating executives, linking executive remuneration with strategic performance indicators.
• Developing ‘good’ remuneration systems, taking into account the stakeholder model, integrating multiyear perspectives in bonus plans, performance indicators, etc.
• Decision-making on executive remuneration: role of the remuneration committee, CEO, HR, consultants; ensuring effective decision-making, dealing with external benchmarking.
• Stakeholder management: provisions and regulations for long term value creation.
• Disclosure and transparency: tools and instruments for disclosure, dealing with the consequences of disclosure, ensuring reliability and objectivity towards the investors’ community, formulating a model that companies can use when writing their annual report.