1. Luke Hildyard Head of Research, High Pay Centre Presentation to AMNT: Why executive pay should matter to investors www.highpaycentre.org www.twitter.com/highpaycentre 1www.highpaycentre.org

2. The direct business case  High pay ratios demoralise employee base – more conflict, more costs, less productivity  Massive pay attracts the wrong people – creates false sense of invincibility  Lavish pay policies lead to poor performance, poor decisions, poor value for shareholders 2www.highpaycentre.org

3. The indirect business case vs  Exec pay sets benchmark for top pay for top managers across the economy  Inequality resulting from excess exec pay creates major social and economic problems  Business culture based on huge inequality is not sustainable 3www.highpaycentre.org

4. Fairness and Proportionality  Wealth is created collectively – efforts of the entire workforce & wider economic context  The talent myth – no international market for CEOs; internal hires perform better  Market failure – FTSE 100 CEO earns more in a year than a surgeon in a lifetime 4www.highpaycentre.org