Underperforming managers still receive bonus pay-outs, according to the 2016 National Management Salary Survey, published by the Chartered Management Institute (CMI) and XpertHR. The survey, which includes data from 425 organisations, shows that 23% of underperformers receive a bonus, averaging £4,270, or 12% of their average basic pay.
Bonuses are a significant part of managers’ pay, representing 38% of CEO and director-level packages and 17% of managers’ total reward, the survey finds.
Ann Francke, chief executive of the CMI, said:
‘The truth is that bonuses continue to remain divorced from performance in too many organisations. Fixing the problem means setting clear targets, aligning bonus pay with performance, and being prepared to have difficult conversations with underperformers who don’t measure up.’
Mark Crail of XpertHR said:
‘Employers have reined in a lot of poorly-focused executive perks since this survey began back in the early 1970s . . . Employers have come a long way in aligning pay and performance, but as our research shows, there is still some distance to go to get it right.’