Director's Rewards and Remuneration Committee Advice
Reward strategy is crucial for directors. Directors drive the business, set the direction and through their leadership achieve the business' strategic objectives. Directors expect a reward package which strikes the right balance between contribution, results, risks, simplicity and tax efficiency.
We have the experience of advising Chairmen and Directors on the appropriate packages for their boards, usually a mix of salary, short and long term incentives and sensible benefits.
One of the most important areas in setting rewards for directors is the setting of challenging but realistic targets, based on the achievement of the strategic objectives, defined in SMART terms. We help boards to define objectives that ensure directors buy-in to the measures that will determine their incentives.
Directors of quoted companies know only too well that their company needs to fulfil the Stock Exchange's regulatory requirements, such as the need to show that the Remuneration Committee has taken independent advice when setting the pay of the Board.
Institutional investor committees are particularly vigilant in policing the implementation of their guidelines, so quoted companies with institutional shareholders must work to ensure compliance in order to avoid shareholder discontent. We can be the independent advisors to your Remuneration Committee.
We have experience of advising on reward packages of directors of all sizes of organisation, both quoted and non-quoted. Whether it is setting basic pay or advising on suitable benefits, incentives or share options, or the precise requirements of corporate governance in relation to remuneration, we can help you to make sure your directors are rewarded for delivering your company's goals and shareholder promises and keep compliance with the regulatory framework.