The Australian Institute of Company Directors (AICD) has issued a publication designed to assist listed company boards when they are negotiating, setting and monitoring executive remuneration.
Executive Remuneration – Guidelines for Listed Company Boards provides practical insights on issues surrounding the remuneration of CEOs and other senior executives.
The practice of setting executive remuneration is of vital importance to directors, given the selection, appointment and oversight of the chief executive officer – a core function for boards – is so closely connected to company performance.
AICD believes the Guidelines are timely given current market and economic circumstances and the subsequent need for some boards to reassess their approach to remunerating executives.
The Guidelines outline some things to do, some things not to do, and some issues for boards to think about. Topics discussed include:
- Handling negotiations with CEOs and other senior executives
- Interaction of boards with advisers and executive functionaries
- Remuneration frameworks and processes
- Remuneration policies and terms
- Providing for termination payments
- Reviewing arrangements
The Guidelines have been written with listed companies in mind. Many of the matters raised are, however, also relevant to large unlisted companies.
To purchase a copy of Executive Remuneration – Guidelines for Listed Company Boards please click here.