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Directors remuneration

Components of remuneration package

2.1 Components of directors’ remuneration package

Directors remuneration
package

Basic Salary Performance Pension Benefits in
related kind

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Bonus options

 Basic salary – e.g. based on the skills required to do the job,
individual’s performance and market rates

 Performance related – e.g. dependent on the achievement of
performance measurement criteria

 Pension – only basic salary is pensionable

 Benefits in kind – e.g. non-wage compensations in addition to their
normal wage and salaries

Illustrations and further practice

Now review illustration 1 and try TYU question 1

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