Understanding directors’ remuneration
It is always sensitive when it comes to discussing non-executive directors’ remuneration. Sometimes the board and major shareholders will have different ideas as to what is fair remuneration compared to minority shareholders.
There have been cases where the board and the major shareholder did not see eye to eye when it comes to increases in directors’ remuneration. The major shareholder defeated the resolution for the increase in remuneration. Even different groups of minority shareholders may have opposing views as to what is fair remuneration.
This is because we are traversing an area laden with much subjectivity. Effort and hard work must be recognised, and it is no different when it comes to directors’ efforts and hard work. Workmen should be rewarded a fair remuneration for an honest day’s work. No one should begrudge that entitlement.
