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Remuneration Effectiveness

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Remuneration frameworks are a cornerstone of employee attraction, engagement, focus and retention. They are also a key focus of proxy advisers, shareholders and regulators.

Where once boards would set and forget executive remuneration structures, it is no longer prudent for a board to wait until market practice, proxy advisor pushback or regulation changes trigger a review.

A remuneration effectiveness review will consider whether the remuneration framework:

  • Is fit-for-purpose (appropriate to the company’s needs);
  • Is consistent with risk appetite, and fits within risk parameters
  • Supports the stated remuneration objectives and principles; and
  • Functions as intended (appropriate processes, checks, approvals and reporting/disclosures undertaken)

Contact us for more information.