Publications
Publications
- November 2018 (Revised January 2019)
- HBS Case Collection
The Weir Group: Reforming Executive Pay (A)
By: Lynn S. Paine and Federica Gabrieli
Abstract
In February 2018, the Remuneration Committee together with the full Board of Directors of the Scotland-based engineering company The Weir Group had to decide whether to seek a shareholder vote at the upcoming Annual General Meeting in April on a proposal to reform the company’s executive remuneration system. The stakes were high: two years earlier shareholders had so roundly rejected a proposal to reform the company’s executive pay arrangements that the result had hit the headlines. A new pioneering proposal had been put together—one that, if successful, would not only mark a dramatic change for the company but would also serve as a test case for executive pay reform in the whole United Kingdom. Should they go ahead? How would a second failure to get shareholders’ approval be recorded in the chronicle of a company soon to celebrate its 150th anniversary?
Keywords
General Management; Board Of Directors; Executive Committees; Human Resource Management; Compensation; Pay For Performance; Incentives; Bonuses; Incentive Programs; Employee Stock Ownership Plans; Performance Measurement; Corporate Governance; Governing and Advisory Boards; Human Resources; Management; Executive Compensation; Change; Performance Evaluation; Employee Stock Ownership Plan; Europe; United Kingdom; Scotland
Citation
Paine, Lynn S., and Federica Gabrieli. "The Weir Group: Reforming Executive Pay (A)." Harvard Business School Case 319-046, November 2018. (Revised January 2019.)