The Role and Importance of Remuneration Committees in Corporate Governance
Remuneration committees play a vital role in corporate governance by ensuring fair and transparent executive compensation practices within organizations. This article explores the role, composition, responsibilities, and challenges remuneration committees’ face, highlighting their significance in promoting good governance and aligning executive pay with organizational performance. Understanding Remuneration Committees A remuneration committee is a specialized committee within a company's directors or supervisory board. Its primary responsibility is determining the appropriate remuneration structure and levels for executives, including the CEO and other top-level management. It ensure that executive compensation aligns with the...