Remuneration and Nomination Committees

Independant Audit Limited produced a report entitled Remuneration and Nomination Committees - Measuring effectiveness and managing risk:

Boards now need to review the effectiveness of these two key governance committees but very little analysis or guidance has been published. In this brief, we discuss what’s needed to make them work well and highlight where they can typically get things wrong. We also outline the steps companies should be taking to the review.

Disgruntled investors, a drop in the share price, attacks by journalists and noisy shareholder meetings. Getting recruitment and reward wrong can wreak havoc with a company’s image – and damage directors’ reputations. Mistakes can also damage long-term performance and
corporate morale.

See full Report in pdf format.