Balancing institutional, social and cognitive factors: human resources professionals' involvement in executive remuneration governance

Shortland, Susan and Perkins, Stephen J. (2024) Balancing institutional, social and cognitive factors: human resources professionals' involvement in executive remuneration governance. Compensation & Benefits Review. pp. 1-17. ISSN 1552-3837

Abstract

This paper investigates qualitatively the involvement of Human Resources (HR) professionals in executive remuneration governance within large UK public companies and similar organisations, considering the complex interplay of institutional, social and cognitive factors that influence executive pay decisions. Through interviews with senior HR professionals and focus groups involving mid-ranking HR professionals, the study identifies key themes, challenges and opportunities faced by HR in navigating the executive remuneration landscape. The study contributes to a more nuanced understanding of the sociological and psychological dimensions of executive pay governance. The findings highlight the practical implications for HR professionals, emphasising the need for active engagement with diverse stakeholder groups, fostering a culture of openness and transparency to ensure that executive pay practices and associated processes align with organisational values and societal expectations, while underscoring the value of learning from diverse perspectives and practices.

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