Remuneration Committee
A Remuneration Committee is a committee of a company‘s board of directors that is responsible for setting the salaries and other forms of compensation for the company‘s executives, including the CEO and the senior leadership team.
Much is involved in deciding how senior executives are rewarded (remunerated). However, it is vital that high-performing executives are rewarded to achieve a positive outcome for shareholders.
There has been much controversy concerning directors’ compensation in recent years, particularly when it comes to CEO pay. Shareholders and investors are now taking a greater interest in this area.
Deciding how remuneration works in practice is the goal of the remuneration committee. Compensation should always be tied to performance.
Damian Carnell has extensive experience on advising the Remuneration Committee. Using this experience he has created the following 3 tools for the Remuneration Committee to use.
COMP Core 4 distills items into their correct time category; and hence helps set the yearly agenda items alongside the scheduled committee meeting dates.
MARKET @ a Glance helps remuneration committees consider the wider scene
and Pocket PROXY helps them consider investor governance views in ten important dimensions.