A behavioural perspective for a change agenda for executive rewards

McDowall, Almuth and Whysall, Z. (2018) A behavioural perspective for a change agenda for executive rewards. In: Perkins, S.J. (ed.) The Routledge Companion to Reward Management. Routledge Companions in Business, Management and Accounting. Abingdon, UK: Routledge. ISBN 9781138294264.

Abstract

This chapter responds to the continued call for an increasingly individual-behavioural and psychological perspective for furthering our understand the drivers and consequences of executive reward (Pepper, 2015) to complement dominant financial and market focused perspectives. We explore the growth trends in executive reward size and constitution through triangulated data from research including a practitioner survey (52 senior practitioners) and an in-depth workshop including focus groups (14 senior practitioners), interpreted through the lens of extended behavioural agency theory (elaborating upon CIPD report by McDowall, Whysall, Jackson & Hajduk, 2015). The data speaks to a distinct gap between the evidence-base for reward-performance associations and the behaviours needed in order to sustain corporate social responsibility (CSR) which should be focused on a wider stakeholder-, not limited shareholder-, based perspective. Reviewing a range of cross-disciplinary literature, we build on Pepper’s suggestions for a change agenda to draw out implications for future research, theory, and practice.

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