Terms of reference for the remuneration committee
There should be a formal and transparent procedure for developing policy on executive remuneration and for fixing the remuneration packages of individual directors.
Companies should go through a formal process of considering executive remuneration. The chairman of the remuneration committee should attend the AGM to answer any questions which may be raised by shareholders on matters within the committee's area of responsibility.
This guidance reflects on the requirements of the UK Corporate Governance Code, published September 2012 (the Code) and draws on the experience of company secretaries and is based on best practice as carried out in some of the UK’s largest listed companies.