Remuneration and Compensation
Compensating executives fairly requires many things: clear judgement, data to help you make informed and financially sound decisions concerning remuneration, an understanding of the relationship between performance and remuneration, and the cost and structure of each component that goes into an executive or Director’s remuneration package and bonuses.
You will need to understand:
- Your business
- Company values and culture
- Current arrangements
- Stakeholder interest
A Remuneration Committee serves to provide advice and assistance to the Board on issues relevant to remuneration of Board members, as well as senior management. The Remuneration Committee uses market benchmarks to set pay levels for senior managers and directors, retain and motivate executives, and ensure that the business can attract competitive talent and maximise company value for shareholders.
A typical committee has a minimum of three members and should consist exclusively of Non-Executive Directors. The Chairman of the Committee must be an independent Non-Executive Director, and the majority of committee members should be as well.
The Essential Guide to Scale Up Challenges
Learn about how to overcome the challenges when scaling up your business
Other strategic challenges you may be facing:
❖ Management Structure – ensure that your business’s operational structure works for you. A well managed business will reduce overheads, improve employee retention and productivity, and help your business grow. Scaling up needs a well built structure so you can grow freely.
❖ Mentoring – learning how to run a business is a process that never stops. Mentoring can help you learn what you need much faster than letting it happen naturally. Their experience can support you through the new challenges of scaling up.
❖ Succession Planning – when you or any other senior employee leaves the business, how will it manage without you? Without proper succession planning, losing the business’s leaders can mean the loss of more than just the individual. You want to ensure your business can stand the test of time, no matter the people at the helm.