Linking executive pay to value created

Overview

What is value and how is it created?  What performance indicators should be used to measure and manage value creation? What is the responsibility of directors in this regard?

This practical full day course has been designed to alert directors to the common pitfalls of poorly stated performance indicators and how to overcome them. Such pitfalls may include short-termism, an over emphasis on financial indicators at the expense of non-financial indicators and an absence of sustainability indicators.  Real-life examples will be given and delegates will have the opportunity to put the theory to practice through worked examples. An extensive reading list will be provided.

The targeted delegates for this course are Remuneration Committee members, who have the responsibility for recommending appropriate performance indicators and executive pay, and the whole Board which has the responsibility for approving them and reporting to shareholders.

The King Code of Governance principles for South Africa (King III)

• Principle 2.25:  Companies should remunerate directors and executives fairly and responsibly
• Principle 2.26:  Companies should disclose the remuneration of each individual director and prescribed officer
• Principle 2.27:  Shareholders should approve the company’s remuneration policy

Key Focus Areas

• On completion of this course delegates will know how to:   
• Design value creating performance indicators which are applicable to their company’s specific circumstances;
• Apply the principles of the balanced scorecard;
• Incorporate relevant sustainability indicators in the balanced scorecard; and,
• Link executive incentives to the achievement of performance indicators.

Duration

One Full day: 09h00 -16h00

Presentation Fees

 Includes: VAT, Course Material, Refreshments & Lunch