PARC survey of RemCo challenges

The remuneration committees of publicly quoted companies face a huge challenge in ensuring they are fully aligned to the organisation’s business strategy and performance, according to a study from the Performance and Reward Centre (PARC). The report surveys 40 senior HR and reward professionals, focusing on the RemCo’s effectiveness in balancing risk and compliance, responding to uncertain economic conditions, engaging an increasingly diverse group of stakeholders and setting the right tone from the top. It suggests that growing numbers of committees are seeking to widen their remit to include reward philosophy in the organisation as a whole, rather than just board level roles.

‘The UK plc remuneration committee: its evolving purpose, effectiveness and challenges’, by Wendy Hirsh, Performance and Reward Centre. Available to PARC members only: http://www.parcentre.com/library/view/181.html