GRG Remuneration Insight 84

by Denis Godfrey & Nida Khoury

Use of imprecise terminology in engagement letters, policies, plan rules and Remuneration Reports often leads to a lack of clarity regarding intended total remuneration packages (TRPs). Poorly expressed engagement letters can create friction over different interpretations of the intended TRP outcomes, and imprecise expressions of policy can lead to concerns amongst shareholders and proxy advisers. We propose terminologies that should alleviate these problems.