The structure of NED remuneration (main board and committee fees)

Approaches to the treatment of committee responsibilities have fluctuated over the years.  Practices moved from recognition of committee responsibilities through payment of separate fees, to payment of a single board fee encompassing main board and committee duties.  Now we see a trend back again to separate fees.

This trend reflects a concern to more accurately capture the burgeoning workload associated with various board functions, and in particular, to recognise differences in workload between the committees. 

Irrespective of the philosophy adopted by individual companies, it is almost universal practice to pay a specific fee to the chairmen of board committees.

© Guerdon Associates 2024
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