Successful Remuneration Committees
Posted on 01 October 2013
Corporate governance can feel like a necessary evil rather than a valuable use of time. There are so many legal and regulatory considerations when you’re involved in running a business in the UK, it can often feel that they are getting in the way of doing business, rather than helping it. Remuneration Committees, if run well, can not only meet your necessary governance obligations but also be a valuable process in understanding and driving your business forward. Here’s a quick checklist to help you get the most from them:
- Have the market data you need to determine your competitiveness – you need comparable sized companies and industry information.
- Understand your business– where are you positioning yourself, what are your business goals and aspirations.
- Know what you are incentivising with variable pay schemes– what behaviours are you rewarding? Are you motivating and retaining the right people? Are you confident that the bonus arrangements are effective in rewarding key strategic goals such as sustainable growth, or building a great place to work?
- Keep your knowledge up to date – executive remuneration is constantly changing. Make sure you’ve taken account of any legal, regulatory, and tax changes.
- Give committee members plenty of time to prepare – send papers at least a week before the meeting.
Please get in touch if you’d like support, advice or coaching on running successful Remuneration Committees.
