The role of the remittance committee

Question 1

What does the remittance committee do?

Answer 1

It ensures that remuneration arrangements support the strategic aims of a business and enable the recruitment, motivation and retention of senior executives while also complying with regulations.

Question 2

What must the remittance committee have?

Answer 2

Must have three members, all of whom must be non-executive directors who are not involved in the day-to-day running of the company.

Question 3

How does integrity apply to members of the remittance committee

Answer 3

They must be honest and must be independent of the executive directors

Question 4

How does objectivity apply to members of the remittance committee

Answer 4

They must not benefit unfairly from decisions taken by the committee

Question 5

How does professional competence and due care apply to members of the remittance committee

Answer 5

They must stay up-to-date with their legal requirements and ensure that decisions meet these requirements.

Question 6

How does confidentiality apply to members of the remittance committee

Answer 6

Must not share information about the remuneration policies of the company

Question 7

How does professional behaviour apply to members of the remittance committee

Answer 7

Must not do anything that damages the reputation of the company or of the remittance committee.