Unlocking the Secrets of Directors' Pay: The 2024 Remuneration and Benefits Survey
Are you grappling with the challenge of determining fair and competitive compensation for your board directors? Look no further. The Institute of Corporate Directors (ICD), in collaboration with Willis Towers Watson, proudly presents the 2024 Remuneration and Benefits Survey of Directors of Publicly-Listed Companies in the Philippines. This comprehensive report offers an in-depth analysis of compensation practices, providing a much-needed resource for companies striving to navigate the complexities of director remuneration.
Why This Report Matters
In today’s rapidly evolving corporate landscape, attracting and retaining top talent is more critical than ever. Adequate remuneration is essential for securing directors who can steer companies through the challenges of the modern business environment. The 2024 survey is a vital tool, offering insights into board remuneration trends that address the widespread issue of setting competitive and fair compensation.
The survey covers various components of director compensation, including board meeting fees, retainer fees, committee meeting fees, and long-term incentive plans (LTIPs). For example, independent directors in 2024 receive an annual retainer fee ranging from PHP 500,000 to PHP 2,400,000, with a median of PHP 850,000. This substantial increase from previous years highlights the growing expectations and responsibilities placed on independent directors.
Comprehensive Insights for Informed Decisions
By examining compensation practices across different company sizes and market capitalizations, the report offers a nuanced perspective that can guide boards, executives, and governance professionals in making informed decisions. This is particularly important in an era marked by heightened scrutiny and regulatory demands for transparency and accountability.
Atty. Pedro H. Maniego Jr., Chairman of the Institute of Corporate Directors, emphasizes the importance of adequate remuneration in attracting the necessary talent to cope with expanded roles and risks faced by the board. He notes, "This survey is an essential resource for companies aiming to enhance their corporate governance practices, ensuring that their remuneration strategies are competitive and aligned with industry standards."
Benchmarking for Better Governance
The business environment today is characterized by rapid technological advancements and a growing emphasis on Environmental, Social, and Governance (ESG) standards. As corporate directors' duties and responsibilities become more complex, their compensation must reflect their contributions and the risks they manage. The 2024 survey provides valuable benchmarks that can help companies develop fair and transparent compensation frameworks, ultimately contributing to sustained growth and competitiveness.
James G. Matti, Head of Willis Towers Watson Philippines, underscores the significance of this study in the context of the ongoing talent war and the rise of ESG investing. He states, "This key study fuses the core competencies of both organizations in delivering a timely and relevant report comprising of Board-related Compensation and Benefits data culled from the country’s Top 100 Publicly Listed Companies (PLCs) in terms of market capitalization."
A Resource for the Corporate Governance Ecosystem
This report is not just for boards and executives; it is a critical resource for the entire corporate governance ecosystem, including regulators, investors, and other stakeholders. By providing a benchmark for director remuneration, the survey facilitates an assessment of whether the compensation paid to directors aligns with the value they add and the risks they manage.
The detailed data presentation in the report ensures that users can understand the remuneration landscape thoroughly. It includes information on various forms of board remuneration, such as retainer fees, board meeting fees, committee meeting fees, and other benefits like life insurance, healthcare, and long-term incentive plans.
Conclusion
The 2024 Remuneration and Benefits Survey of Directors of Publicly-Listed Companies in the Philippines is more than just a report; it is a comprehensive guide that helps companies set competitive and fair compensation for their board directors. With insights from the top 100 publicly listed companies, this survey provides a clear benchmark for director remuneration practices in the Philippines.
Leverage this indispensable resource to ensure your company remains attractive to high-caliber directors and aligned with best practices. By adopting the benchmarks and insights provided in this survey, you can enhance your corporate governance practices and contribute to your company's sustained growth and competitiveness.
Don't miss out on the opportunity to gain a competitive edge in director remuneration. Get a copy of the 2024 Remuneration and Benefits Survey to uncover valuable insights into establishing fair and competitive compensation for your board directors.
2024 Remuneration and Benefits Survey
PHP 75,000 inclusive of VAT
For more information, email us at communications@icd.ph