Guerdon Associates recently extracted the remuneration committee membership data for the ASX 300 from GuerdonData®.  We were surprised at the results.

We found that in 53 out of 279 (19%) remuneration committees the CEO was an official member.  The average market capitalisation of these companies was $1.6 billion, with 16 companies over $1 billion.

Whilst ASX Guidance Note 9 only recommends a majoriy of independent non-executive directors on the remuneration committee, several other local and international corporate governance proxy policies/voting guidelines call for a committee free of executive directors.  Six out of nine governance policies or stock exchange listing rules explicitly call for a remuneration committee made up solely of non-executive directors, including Vanguard Investments Australia, Colonial First State, the UK Combined Code, the NYSE and NASDAQ. 

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