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Remuneration committees

Guidance and considerations for corporate governance professionals on remuneration committees looking at executive pay and benefits.

In this section

Long term incentive schemes

The manner in which senior executives of large public companies are remunerated is a high-profile issue and one which is likely to become even more sensitive in the context of Coronavirus.

Booth and Booth

Family Companies and Section 994, Companies Act 2006 - most common grounds by far were exclusion of a shareholder from management of the business.

Time for new approach on executive pay

Last month, ICAEW and Hermes convened a senior panel of remuneration committee chairs and investors, along with Anna Turley, MP for Redcar, to explore how realigning executive pay can help to restore trust in business, reports Julia Root-Gutteridge, ICAEW Manager for Board Effectiveness.

ICAEW guidance and reports

How to end excessive pay

Our first application of the Connect and Reflect approach looks at how organisations can tackle excessive executive pay. It requires connecting with the public on pay, reflecting on what is said and taking action if it is required. In this paper we examine the challenges and provide a 10-step action plan to support boards in their approach to remuneration of executives.

Executive Remuneration: Factors influencing consultants’ advice

This briefing examines the factors that influence the advice executive remuneration consultants provide to their clients. Based on insights from interviews with consultants, the briefing identifies the key factors influencing their advice and their client relationships.

Webinars and other recordings

Does remuneration benchmarking reward failure?

Mark Freebairn, Partner and Head of the Financial Management Practice at Odgers Berndtson, and Ruth Bender, Professor of Corporate Financial Strategy at Cranfield School of Management, discuss executive pay and remuneration benchmarking.

Disclaimer: The opinions expressed by external guest speakers in interviews or other publications included on this website are, by their nature, those of the speaker. They are not necessarily fully endorsed by the ICAEW or purport to reflect the official policies and views of the ICAEW or its members.

Bloomsbury Core Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Core Accounting and Tax Service.

Directors' remuneration

Overview of key recommendations made for directors' remuneration, as well as the statutory and common law position.

Board remuneration committees

Practical guidance to assist remuneration committees with their responsibilities.

Board committees

Practical guidance on the effectiveness of audit, risk, remuneration and nomination board committees.

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Executive directors

Chapter 12 - The role of the executive director, chief executive and finance director are outlined as well as director remuneration and the roles and responsibilities of the remuneration committee. Pay, pensions and other benefits, disclosure requirements, contracts and severance are also covered.

The board structure and its committees

Chapter 3 deals with the structure of the board, its governance role and responsibilities. It also gives brief overviews of the different types of board committees, including: audit; nomination; remuneration; and risk committees. These are dealt with in more detail in later chapters.

Unsolved governance problem: performance measurement and executive pay

This title provides comprehensive, expert-led coverage of all aspects of corporate governance for public, nonprofit, and private boards. This section comprises five chapters on the subject of executive remuneration, the remuneration committee and performance measurement and incentives.

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The Library & Information Service provides a hand-picked collection of industry press articles as a benefit of membership. If you are unable to access an article, please see our Help and support or contact library@icaew.com

The big picture for compensation in a pandemic

The article discusses several foundational principles for compensation committees in developing new approaches to executive pay. The foundational principles include the need to prioritize stakeholders, the need to focus on engagement rather than retention and the need for the boards to align performance and pay outcomes to create the appropriate incentives.

Recommendations for compensation committees curing the COVID-19 crisis

COVID-19 is challenging compensation committees who must consider the impact on employee and executive compensation

Executive compensation in era of stakeholder primacy

Article discusses Integrating environmental, social and governance (ESG) metrics into pay plans. Topics discussed include quantify the right ESG metrics to hold management accountable for their outcomes; quantify the right ESG metrics to hold management accountable for their outcomes; and reducing energy usage, reducing waste, or offsetting emissions.

Terms of use: You are permitted to access articles subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Useful links

Corporate Governance Report

Grant Thornton's review of the annual reports of 308 of the UK’s FTSE 350 companies with years ending between April 2019 and June 2020. The section on remuneration committees looks at how successfully the reports engage with investors to explain executive and performance-related pay policies.

Remuneration committee - terms of reference

Guidance note for a 'company seeking to comply fully with the requirements of the UK Corporate Governance Code, published in July 2018 (the Code).'  The ICAEW Library also holds a reference copy.

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