ABSTRACT
This chapter focuses on the governance arrangements of large, publicly quoted companies as the most relevant comparator group. It considers five key themes: culture, stakeholders, remuneration, viability and succession planning. Care must be taken when setting performance measures and remuneration packages that these all encourage the desired culture. Senior executive remuneration is one of the most contentious and emotive issues for large, publicly quoted businesses and on which they receive much criticism. Remuneration includes salaries, benefits, pensions and short and long-term incentives, including the performance targets set. Reporting on remuneration was introduced for companies on the main London stockmarket by the Greenbury report and Code, in the mid-1990s. Consultants would often work with the executive team to devise the pay structures and then present to the remuneration committee. The use of consultants does not remove accountability from the remuneration committee. Shareholders in companies on the main stockmarket vote every three years on remuneration policy.
