Remuneration Committee Checklist

Many company boards are struggling to ensure their remuneration committees lift their game in order to achieve a high affirmative vote by shareholders to accept the remuneration report. Below is a checklist that we thought may assist in setting and evaluating the remuneration committee.

  • All members are “independent”
  • All members are appointed by Board or Directors’/Governance Committee
  • Committee develops CEO performance contract
  • Committee reviews executive officer pay results to ensure rewards are in-line with performance/shareholder returns
  • Committee retains outside executive remuneration expert who works with both the Committee and management
  • For the CEO and other executive officers, Committee approves program changes, share and option grants, and incentive and salary opportunities
  • Committee regularly provides the full Board all necessary and pertinent information
  • All regulatory requirements are fully met
  • Executive pay guidelines are proactively discussed with major shareholder groups
  • Any potentially controversial pay disclosure in annual remuneration report to shareholders is discussed in advance with the full board.

© Guerdon Associates 2024
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