Remuneration committee

Question 1

What is the required composition of the Remuneration Committee?

Answer 1

At least 3 NEDs (2 for smaller companies). Chair of the board may be a member only if independent upon appointment.

Question 2

What does the Remuneration Committee do?

Answer 2

• Sets executive pay policy
• reviews reward structures
• includes malus/clawback provisions

Question 3

Name key advantages of the Remuneration Committee.

Answer 3

• Avoids conflicts of interest
• aligns pay with performance
• ensures transparency.

Question 4

What are disadvantages of the Remuneration Committee?

Answer 4

• Potential bias
• public scrutiny
• narrow focus on executive pay.