Four Roles of Remuneration Committee

(1) Complying with laws and best practice
 To ensure that executive directors do not set their own remuneration.
 Remuneration committee should be staffed by non-executive directors.
 To ensure compliance with any relevant legislation.


(2) Establishing General Remuneration Policy
 Consider pay scales foe directors, taking into consideration the remuneration offered by comparable companies.
 Consider what relation remuneration should have to measurable performance or enhanced shareholder value.
 Consider when directors should receive performance-related benefits.


(3) Determining remuneration packages for each director
 To establish packages that will retain, attract and motivate directors whilst taking into account the interests of shareholders.
 To consider how different aspects of the package are balanced.
 To consider what measure are used to assess the performance of individual directors.


(4) Determining disclosure
 To consider what disclosures should be made in the remuneration committee report in the accounts, in the corporate governance section.
 The report includes details of overall policies and the remuneration o individual directors.



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