How to end excessive pay?

Everybody has an opinion on executive pay, and we want to hear what you think and why.  

Politicians and journalists often say that there has been a market failure, and remuneration committees, institutional investors and remuneration consultants get the blame. The company boards who are ultimately responsible for executive pay seem unwilling or unable to change. Unfortunately it can be safer to ignore anxiety and shelve good intentions.  Sticking with remuneration schemes which are tried and tested is the best way to avoid attention.

At the centre of this debate are key questions around whether business leaders add sufficient value to justify what they get paid, and the fair distribution of wealth in the workforce. Only acknowledging that there is a problem in egregious cases of 'rewards for failure' is insufficient, but where do we go from here? 

Following in the footsteps of the US, UK listed companies will soon be required to publish a simple ratio which compares CEO pay with the pay of median pay of UK employees.  Will ratios prompt a mature national conversation on pay, or will there be an exodus of talent from the UK?  

Our paper on how to end excessive pay challenges boards to not give up on the tricky issue of executive pay. Boards can no longer attempt to delegate their responsibility to committees or advisers. Responsible boards must roll up their sleeves and take a fresh look at this issue, and they must keep an open mind about whether they can justify current pay levels or whether change is needed.  We have suggested a ten point action plan for boards which includes inspirational real-life examples. Boards which don't follow all of the steps risk continuing criticism, and this fuels the decrease in trust in business. Inertia also puts the UK's reputation as an international leader in corporate governance in jeopardy.  

Do you agree that failure to act is no longer an option, or are you concerned that the issue has been exaggerated for political or other ends? If you think we've got it right then please say so, but we're just as keen to hear why we've got it wrong, especially if we've missed alternative approaches which will put an end to excessive pay more quickly or efficiently.