who decides directors amount of pay?

[tonyjai]

just out of curiousity, thanks!

 

[Trader333]

Key shareholders decide but in the many cases it is the directors who are the biggest shareholders.


Paul

 

[Airthrey Capital]

Major Plc's normally have a remuneration committee who will decide levels of pay for Directors

 

[tonyjai]

is the remuneration commitee like the hrm department?

 

[gullible]

They basically decide themselves. Invariably there are cross meberships in remuneration committes. May be shareholders can have a say but they rarely do.
Remuneration Committees = Scratch my back, I will scratch yours.

 

[wisestguy]

and who makes up / decides who is on this committee ?

a very good question BTW.

 

[gullible]

I believe it is the board !

 

[Mayfly]

The key words here are: "Cadbury report remuneration" and if you type these into Google you'll find >13,400 articles.

Here's one of the first: http://www.manifest.co.uk/reports/UK Corporate Governance Milestones.pdf

HTH

Cheers

Mayfly

 

[Tuffty]

Rather like the price of a stock it is the free market in 'directors' that decides their pay.

 

[SOCRATES]

just out of curiousity, thanks!

And in addition to AC,s reply, at the Annual General Meeting of the Company, it is put to the vote of the Shareholders whether the Directors who have served their term and are due to be re elected should be. If I remember correctly, it takes a vote of not less than 52% of the Shareholder Voting Power to unseat any of them and replace them with someone else, but first there has to be a proposed person.....

 

[wisestguy]

so members of this committee would be who ? other non dircetors employees of the company ?

 

[SOCRATES]

It is not clear, and probable varies from company to company.