THE BOARD COMMITTEE MEMBERS’ REMUNERATION: THEORY AND ADVANCED PRACTICES FOR BANKS

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Abstract

The paper investigates the issue of the board committee members’ remuneration in banks. The authors came with conclusion that this issue of research is not explored enough by researchers in international context. Probably this is the major reason of such big black holes in the bank practices. The systems of remuneration for committee members in banks are still highly rigid and based rather on “pay for presence” than “pay for performance” principle. The authors developed an advanced system of remuneration for the board committee members with a set of new ratios which account the committee members’ initiative and participation in the committee activity. The system has a variable structure and the problem of its rigidness has been solved through putting in the remuneration structure bonuses which take a huge part. The system has been applied methodologically for the audit committee member to assess his/her performance and set the remuneration.

Keywords: Board Committees, Director Remuneration, Bonuses, Fixed Salary, Audit Committee

How to cite this paper: Kostyuk, A. N., & Govorun, D. A. (2010). The board committee members’ remuneration: theory and advanced practices for banks [Special issue]. Corporate Ownership & Control, 7(4-5), 72-82. https://doi.org/10.22495/cocv7i4sip10