Directors Remuneration book by Cliff Weight is published. To order your copy on Amazon, click here .
UK companies are rightly considered to rank among the best in the world in their standards of corporate governance and reporting. But the crisis has shone a spotlight on all aspects of the regulatory framework including corporate governance and forced an examination of where things have gone wrong and why. The broad consensus is that, while the UK model of corporate governance is not essentially flawed, there are areas where we all need to do better – government, companies and shareholders. Central to these concerns has been directors’ pay.
Directors' remuneration lies at the heart of the debate on effective corporate governance, not least because it is the issue, above all others, in which directors face a conflict of interest.
This new book by MM&K Director, Cliff Weight addresses the headline issues: how much to pay, when to pay, what to pay for and how to do it. Even more importantly, it deals comprehensively with every conceivable aspect of remuneration and its structure, reporting, law and practice.
The book sets out to explain these many complexities in simple terms and to provide a source of reference to legislation and guidance on best practice, including checklists and flow charts.
It contains, for example, detailed explanation and guidance on performance measures and how to set targets that are stretching but fair to executives and shareholders.
The resulting remuneration strategy should ensure the company’s culture, code of conduct, human resource policies and performance reward systems support the business objectives, risk management and internal control systems.
In the UK, we have avoided a spate of regulation, but there have been significant consultations on the importance of “long-termism” in the corporate UK, on narrative reporting and on the disclosure of directors’ remuneration.
New legislation is proposed for 2013, but the approach continues to be driven by the concepts that it is the shareholders’ responsibility to control and approve directors' remuneration and the government’s responsibility to ensure that the Companies Act and supporting frameworks enable shareholders to receive information so as to be able to exercise their powers.
This book is intended to help companies do the right thing in the right way.