; EXECUTIVE REMUNERATION
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EXECUTIVE REMUNERATION

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Few topics in corporate reporting generate as much interest and debate as executive remuneration. Most companies don't need to change their basic remuneration strategy; it's more a question of how they present it. A good strategy should provide a clear vision of where a business is going and of its short-term objectives on that path. A company's management team should focus on achieving those strategic priorities, yet too often remuneration packages are not aligned with strategic goals. Report Leadership believes that internal and external reporting should be more closely aligned. Their suggested framework applies equally to reporting to boards, to shareholders and to other users of external reports. The key performance indicators (KPIs) should be those used to monitor the management of resources, risks and relationships. The links between these and executive remuneration need to reflect the relative importance of the KPI, taking into account responsibility and accountability.

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