For Sunan Pty Ltd to have a successful float, a detailed and well thought out compensation governance needs to be developed. The following recommendations have been built create a compensation package to help maximise shareholder interest for Sunan Pty Ltd.
PRINCIPLES OF REMUNERATION
Remuneration packages should be created to attract executives capable of motivating people, communicating a vision, and leading a company to success to achieving
long-term shareholder value
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Remuneration packages should reward success over short and long term periods with an emphasis on the long term
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Remuneration packages should be fair to all stakeholders of the business
REMUNERATION COMMITTEE
The determination of executive’s compensation packages should be handled by a committee composed of fully independent directors.
Remuneration committee members should have ability to exercise independent judgement while being able to balance the long term shareholder interests with the need to attract, motivate and retain executives. To make sure there is a good balance the committee must consider the committee members and how the committee works.
Selecting Committee members
In selecting the committee members, Sunan Pty Ltd should consider the following:
• Diversity of professional backgrounds and if possible include members who specialise in executive compensation.
• There should be nothing less than 66% non CEO representation on the board.
• Mr Sonny Sunan should not be part of the board to make the board fully independent.
Mr Sonny Sunan should not be part of the selection of members who serve on the remuneration c ...