In 2018, rising public concern about pay inequality prompted the introduction of a revised UK Corporate Governance Code. This initiated reforms to broaden the remit of boards and remuneration committees (RemCos) – which manage executive pay – to ensure they give more attention to associated issues such as culture, fair and proportionate workforce pay and employee engagement.  

The COVID-19 pandemic has further heightened issues of inequalities in society and the CIPD believes that the value of treating people well, and the associated opportunities and risks, should be central to corporate governance and strategic leadership conversations for organisations of all sizes. 

In 2019, we made the case for organisations to formalise the place of people at the boardroom by evolving their RemCos into people and culture committees. 

The latest report by the CIPD and the High Pay Centre – funded by the Joseph Rowntree Charitable Trust –  focuses on practical measures that some companies are already undertaking, drawing on interviews with HR leaders, board directors and investors, as well as evidence from case studies. Although there is no one-size-fits-all approach, people professionals can use these examples as a roadmap for change in their own organisations.  

Key insights from the report include the importance of:

  • Engaging the workforce in the pay-setting process, 
  • Formalising people and culture matters as board-level issues (appointing at least one board member with HR experience).
  • Recognising that company performance should be measured in terms of non-financial as well as financial metrics.   

Download the report below

Role of the RemCo: How to achieve good governance of pay, people and culture

Download the report
PDF document 434.4 KB

View our previous report

RemCo reform: Governing successful organisations that benefit everyone

Download the report
PDF document 1.2 MB

More on this topic

Data

Data hub

Explore the evidence behind workforce trends

Data

Pay intentions

Stay up to date with the latest pay intentions among employers in the UK.

Guide

Employee voice channels: Guide for people professionals

Practical advice for people professionals to maximise the impact of engaging with all employees through employee voice channels

For Members
Thought leadership

Avoiding risks and unlocking rewards around employee engagement

Jake Young, CIPD Senior Policy and Practice Adviser for Employee Experience, OD & L&D, examines the impact of employee engagement on key business outcomes and what employers can do to drive more positive engagement

More reports

Report

Health and wellbeing at work

The CIPD’s biennial report exploring health, wellbeing and absence management provides invaluable trend analysis and practice insight to help employers and people professionals develop and maintain supportive, productive workplaces

Report

Flexible and hybrid working practices in 2025

Our research explores how current flexible and hybrid working practices are impacting performance, employee engagement and wellbeing

Report

Role of HR in selecting and developing senior leaders

Drawing on academic research and practitioner experience, this report explores what good leadership looks like and how people professionals can be effective in the selection and development of senior leaders

Report

CIPD Good Work Index

The CIPD Good Work Index is an annual benchmark of job quality in the UK, providing data and evidence-based insight on how to improve work and working lives

See all reports