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CS Executive · Company Law and Practice · Meetings of Board and its Committees

Under Section 178, which statement about the Nomination and Remuneration Committee's remuneration policy is correct?

The remuneration policy must be placed on the company's website, if it has one, and its salient features, changes and web address must be disclosed in the Board's report. It covers directors, KMP and other employees and balances fixed and incentive pay.

  1. AThe policy must be placed on the company's website, if any, and its salient features disclosed in the Board's reportCorrect
  2. BThe policy is fixed by the general meeting and not recommended to the Board
  3. CThe policy covers only directors and not key managerial personnel
  4. DThe policy must provide only fixed pay to ensure reasonableness

Explanation

The committee recommends to the Board a policy for directors, KMP and other employees. The proviso to Section 178(4) requires the policy on the website, if any, with salient features and the web address disclosed in the Board's report. Remuneration should balance fixed and incentive pay.

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