Corporate personality: the Achilles' heel of executive remuneration policy

Abstract

Purpose

This paper aims to explore the role corporate personality has played in the battle between executive remuneration and fairness, which is linked to rewarding performance. This paper also aims to explore some of the policy measures taken by the UK Government to curb excessive remuneration especially in the banking sector.

Design/methodology/approach

This paper employs an analytical approach. An analytical approach relies on the collection of new information upon which to base any conclusions. The research supports the arguments being made in the paper.

Findings

The paper shows how the ruling in Salomon, over a century ago, that cemented corporate personality and limited liability in the UK, is hampering many of the measures aimed at rewarding performance and promoting fairness in relation to executive remuneration.

Originality/value

Limited research has been done on executive remuneration. Since executive pay has recently hit the media agenda, this paper purports to tackle a current and ongoing issue.

Citation

Nyombi, C. (2014), "Corporate personality: the Achilles' heel of executive remuneration policy", International Journal of Law and Management, Vol. 56 No. 3, pp. 184-196. https://doi.org/10.1108/IJLMA-05-2012-0017