Escolar Documentos
Profissional Documentos
Cultura Documentos
Base Salary
Bonus
Stock options
Restricted share plans (Stock grants)
Pension
Benefits (car, health care etc.)
* Shareholder return
* Share price (and other market based measure)
* Profit base measure
* Return on capital employed
* earning per share
* Individual director performance (in contrast to corporate
performance measures)
Critically discuss the importance of executive director
remuneration disclosure?
Experience has shown that variable pay schemes have become
increasingly complex
And that in certain instances this has led to excessive
remuneration and manipulation. As part of the
accountability/transparency process, the remuneration committee
membership should be disclosed in the companys annual report,
and the chairman of the remuneration committee should attend
the companys annual general meeting to answer any questions
that shareholders may have about the directors remuneration.
The disclosure should contain sufficient detail to enable
shareholders fully to understand the components of directors
remuneration as well as progress towards the achievement of
previously granted awards and should include details on pension
entitlements and increases thereof and perquisites and other
benefits in kind. Without such disclosure shareholder control over
director remuneration is illusory. In some countries, executives
seem to consider the disclosure of the precise amount of
remuneration to be a risk to their personal safety.
*** Notes:
II: Institutional Investors