Editorial
Strategy, performance and governance: the sensitivity of remuneration
The volume and quality of new papers, surveys and case articles that are submitted for consideration for publication in Strategic Change confirms my feeling that the ability to think and manage strategically is an exceptional and rare talent, acquired only by a handful of corporate leaders, managers and entrepreneurs. These are the individuals who are prepared to embrace the reality of fundamental and unpredictable change in markets and industries and articulate unconventional, risky and yet effective strategies to deliver superior customer value and corporate performance. The management vision, market sensing, innovation and business acumen required to accommodate the new agenda for strategy development are scarce and valuable capabilities that command a premium valuation in an executive recruitment market where demand far outstrips supply.
Recognition of the importance of strategic clarity has been confirmed by the recent surveys of both 'Britain's Most Admired Companies' and indeed 'The World's Most Respected Companies' (Financial Times Report, 1999). These peergroup judgements, offered by corporate leaders from many diverse sectors and contexts, confirm that the highest ranked attribute of a 'most-admired' or 'respected' company, is a clear well-conceived and communicated strategy-not operational efficiency, shortterm profit, cost reduction or improvements in share value. The implication is that a clear, strong and appropriate strategy, that delivers customer satisfaction and loyalty, financial performance and high quality products and services through a well managed and responsive organization-will drive the other results and benefits that the company requires.
The remuneration and accompanying benefits of top management strategists, especially in the United Kingdom (UK), is again back on the agenda-much of it for all the wrong reasons. In the 1990s, the bosses of the newly privatized utilities made headlines as they were accused of taking excessive pay packages that in many