The Board Masterclass - The Effective Remuneration Committee
The fourth course in a series of half-day workshops designed for professionals with board experience who are interested in staying up to date with the latest developments which affect their board roles.
The workshop is designed to be interactive and is run by recognised experts in their field.
The sessions are followed by networking drinks to give you the opportunity to meet informally with our speakers and fellow delegates.
Attendance at each workshop will entitle attendees to receive a special FT NED Programme Board Masterclass Certificate of Continuing Professional Development for 5 hours of structured learning.
- Understand the role and remit of a Remuneration Committee
- Discover how to ascertain what the correct and appropriate rewards should be
- Be aware of and understand the latest guidance
- Recognise the interpersonal skills which are essential to an effective Remuneration Committee member
- Examine the dynamics between the REMCO and the Executives
- Think about the different drivers for executive remuneration
- Assess the risks of getting remuneration wrong
- Reflect upon what makes a good REMCO Chairman
- Consider the wider view of remuneration – investors, stakeholders and the public at large
The role of the Remuneration Committee member is perhaps one of the most important and high profile roles in the company, but it is also fraught with difficulties and potential conflict. Whenever remuneration is involved, emotions and tensions rise. Finding the way to the correct level of remuneration to appropriately reward and motivate an individual without drawing negative responses from shareholders (and the press) can be complicated.
This course will look at the role of a remuneration committee (Remco) member in detail, considering the framework within which a Remco has to work, it works through the personal dynamics between the Remco and the CEO and other executives, considers what makes a good Remco Chairman and thinks about how remuneration is regarded by the wider stakeholders.
Participants will have the opportunity to discuss some real-life examples of issues that might typically arise for a Remco such as:
- The CEO says he will waive the bonus just awarded to him
- An LTIP is two years in existence and you conclude that the EPS target at the top of the range is unachievable – do you say that’s life and allow it to continue?
- A divisional CEO is saying they are going to resign due to new CEO being appointed and expects “good leaver” status
- A new CEO is being hired and it is agreed that they (and their family) will be based in UK – at the last minute they say it is none of Remco’s business where family is based
- The Remco decides on no pay increase for the CEO but the CEO proposes an increase for the CFO
- You decide there is a good case for a claw-back on the departing CEO
- You are a newly appointed Remco Chair and the CEO says you should not visit shareholders
Participants of the course will also take part in an interactive case study which looks in depth at the current dilemmas facing REMCO's and hear from a REMCO Chair with the opportunity to ask questions.
Sean is the founder of Boardroom Dialogue and focuses on undertaking Board Effectiveness Reviews, Business Coaching and being a sounding board for Chairs of Remuneration Committees.
Until December 2013 he was a Senior Partner in PwC’s Human Resource Services group and spent the majority of his time dealing with Boardroom issues. He advised global companies on all aspects of Executive Remuneration across all sectors of the economy. Sean has a particular interest in corporate governance, for example, he led PwC’s work on Board Effectiveness Reviews for public and private companies.
Sean also sees matters from the other side of the table as he is a Non - Executive Director on the Remuneration Committee of the Rugby Football Union and also at the Institute of Chartered Accountants in England and Wales.
FT Non-Executive Directors' Club×
FT Non-Executive Directors' Club
Lesley Stephenson is the Publisher of the Financial Times Non-Executive Directors' Club and also of the Financial Times Non-Executive Director Diploma.
She has specialised in corporate governance since publishing the Cadbury Report on behalf of the London Stock Exchange in 1992. Lesley has written for the International Corporate Governance Network (ICGN), the European Corporate Governance Institute and the ICAEW NED Special Interest Group.
She has been the Publisher of the Club since 2003, she was the driving force behind the development of the FT NED Diploma and continues to oversee it.
She also publishes the leading monthly newsletter on corporate governance, Governance, which has been around for over 20 years covering governance developments and best practice world-wide.
Global DirectorSee bio
FT Career Management×
FT Career Management
Steve has 24 years experience in the commercial departments of global news content providers, firstly with The Telegraph Media Group where he ran various vertical sector print and digital publications and latterly with The Financial Times, where he is currently the Global Director of Financial Times Career Management (FTCM). His remit includes the running of exec-appointments.com, the FT Non-Executive Directors' Club and the FT Non-Executive Director Diploma and the Business Education franchise. He has been involved with the FT NED Diploma from conception through to it's current state of being the most recognised, robust and credible formal qualification for independent directors in the world.
The Financial Times
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