CIMA BA4 · Chapter 6 · Question 7 of 10
Which of the following is generally regarded as good practice for the remuneration of non-executive directors?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Fees reflecting time commitment and responsibilities, without performance-related elements such as share options
Explanation
Governance codes recommend that non-executive remuneration reflects time commitment and responsibilities and should not include share options or other performance-related elements, as these could compromise independence. Paying nothing would make it hard to attract capable people and is not required.
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