Workers ready to take a pay cut

Chief executives are prepared to take a pay cut of up to 12% to work for a strong brand, according to a study led by a professor at London Business School.

Nader Tavassoli’s research, which compared the pay of 2,700 executives with the reputation of their companies’ top products, found that other senior executives were also prepared to accept a lower salary in order to join a strong brand.

The effect was strongest for the chief executives, though. This is because their personal brand is closely and publicly linked to that of their company — so they benefit by taking some of the gloss with them when they move on.

Read more in The Sunday Times

Notes on a scandal: using technology to improve your online reputation

t has been a good few weeks for anyone who likes to indulge in a bit of corporate schadenfreude: Volkswagen’s emissions scandal and the cyber-attack on TalkTalk have kept consumer and business news sites busy analysing what happened and how the companies involved should respond. Put either company’s name into a search engine and the results include plenty of links referring to these events.

And they are far from alone. Any business can find its name connected to bad news online, whether it is a review from a disgruntled customer or a report about a legal case.

So can companies use technology to improve their reputation by changing what people read about them online and in social media? Read more on the Guardian’s website.

Musical chairs in the boardroom

WHEN David Brennan stepped down as chief executive of Astra Zeneca in 2012, it was not the only drugs company that found itself with a vacancy.

Its big rival Roche had to make four internal changes after Pascal Soriot, chief operating officer of its pharmaceuticals division, was headhunted to replace Brennan.

The departure of SD Shibulal from the technology consultancy Infosys last year had a similar impact on two of its competitors, while Andrew Moss’s exit from the insurer Aviva in 2012 led to changes at AIA, Willis and Prudential.

Unexpected vacancies at other companies are just one of the knock-on effects of a chief executive’s departure, according to a report from the search firm Armstrong Craven. The boss’s exit hits the share price, with the average shareholder return taking a tumble in the following year, and increases the likelihood that other executives will leave.

Read more in The Sunday Times

Freelance journalist and writer