As this issue continues to draw criticisms from various stakeholder groups, companies are now facing immense pressure to navigate the nuances of board pay delicately and effectively.

There are increasing demands on directors today – with independent non-executive directors (NEDs) carrying the same legal duties, responsibilities and potential liabilities as their executive counterparts. NEDs plays an integral balancing role in segregating management and independent supervision and it is therefore essential that remuneration remains attractive to appeal to the relevant experienced and skilled individuals. Despite the increase in risks, responsibilities and expectations, remuneration for NEDs has not increased in line with executive remuneration. The ideal board remuneration issue has always been a challenge in many countries, but efforts to commensurate NEDs’ fee with their skills, experience and competency should bring about an impact on board performance and subsequently, an effective board.

There is no ‘one-size fits all’ compensation structure. Nevertheless, urgent action needs to be taken to strengthen the remuneration governance, one of which is to support the board’s role in structuring executive compensation. Boards must adopt a new thinking as we move towards a 21st century governance framework in balancing remuneration, performance and increased stakeholder expectations to address the growing complexity of compensation strategies.

Learning Outcomes

• UNDERSTAND THE IMPORTANCE OF A FAIR & REASONABLE REMUNERATION in order to attract and retain the best people that can drive growth and performance of your board & executive team.
• LEARN ABOUT UPCOMING TRENDS, APPROACHES AND BEST PRACTICES for board remuneration as increasing demands are being placed on directors to perform in the complex and changing environments of today.
• BE PART OF THE DEBATE as to why it is important to recognise the value of director’s skills, experience and time when determining NED’s remuneration.

Speaker

MARK REID

Mark is a specialised Executive Compensation consultant and has been with Willis Towers Watson and predecessor firms since 1991. Apart from advising Remuneration Committees and Boards of major international companies primarily on executive pay policies, Mark also advises a number of UK FTSE 100 Remuneration Committees across a range of industries including GSK, Vodafone, WPP, Sky, Rio Tinto and many others in UK, US and Continental Europe.

Based in London, Mark specialises in helping Boards deal with evolving corporate governance demands and shareholder interactions, as well as developing an effective Pay for Performance alignment.

Mark is a Fellow of the Institute of Actuaries (FIA) and holds an MA (Hons) in Mathematics from Cambridge University.

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