Improving remuneration governance

THERE has always been interest by shareholders and the general public in the remuneration of boards and management. Since the Code of Corporate Governance was revised in 2012, there has been a greater emphasis on the governance of remuneration, reflecting this interest and its importance in the fair treatment of shareholders. This raises the question: how can boards ensure that there are effective remuneration governance processes in place?

Clarifying responsibilities

The first step in effective remuneration governance is to have a clear understanding of how remuneration will be managed.

What is the role of the remuneration committee (RC) versus that of management? Which executives are "covered" by the RC? What are the different responsibilities of management and…