The aim of executive remuneration is to incentivise and reward appropriate performance, risk management and behaviour. A welldefined remuneration policy will clearly link the terms of performance and behaviour to the company’s strategy, continuity and long-term stable value creation.Given the strategic role of the board in ensuring the long-term sustainability of a company for its shareholders and wider stakeholders, it is also important that remuneration levels are such as to “attract, retain and motivate”1 directors of the appropriate quality and calibre required. In order to align incentives, a significant proportion of executive directors’ remuneration should be structured so as to link rewards to corporate and individual performance. More…

Source: Eurosif