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

Modern slavery

Learn what modern slavery is, as well as HR's role in preventing and tackling it

CIPD Viewpoint
Responsible business

Explore the CIPD’s point of view on responsible business, including recommendations for employers

Workplace pensions

Learn about the UK law surrounding workplace pensions and how to choose new schemes or review existing pension arrangements

More reports

Neuroinclusion at work report 2024

Find out about the importance of neuroinclusive workplaces, what employers are doing and the working experiences of neurodivergent and neurotypical employees

People Profession 2023: International report

Insight into how global issues are impacting people professionals in the UK, Ireland, Asia-Pacific, MENA and Canada

People Profession 2023: Asia-Pacific report

Insight into how global issues are impacting people professionals in Australia, Hong Kong, Malaysia and Singapore

People Profession 2023: Middle East and North Africa report

Insight into how global issues are impacting people professionals in Egypt, the Kingdom of Saudi Arabia and the United Arab Emirates

See all reports