Misco has published the third edition of the Misco Executive and Board Remuneration Report. The value of this report has been increasing in line with the growth of the economy, developments in Maltese-owned family businesses and the setting up in Malta over the past years of large, complex organisations.
The positions included in this report are chairperson, chief executive officer, financial director, operations director, commercial director, human resources director, ICT director, marketing director, technical director, compliance director and non-executive director.
In fact, one important addition in this edition is the inclusion of remuneration for the post of non-executive director, given that the number of people filling this role is evidently on the increase.
The survey is intended to guide leading organisations in designing and maintaining an appropriate remuneration framework for their senior management and C-suite positions.
One of the most salient outcomes of the report is that an increase was mostly noted in the positions of CEO, financial director, commercial director and operations director.
Ritienne Xerri from Misco said: “While organisations need to ensure that reward policies and practices are both practical and relevant to today’s employment market, there is no ‘one size fits all’ approach to remuneration structures that will suit all organisations’ circumstances, especially for senior management posts.
“Nevertheless, there are frameworks that help stakeholders develop executive remuneration policies, practices and structures. Having access to robust and up-to-date market information is also essential.”
Lawrence Zammit, Misco director, said: “Decisions on the remuneration package of directors and C-suite positions are usually set on views about the market worth of the individuals.
“Although a job evaluation exercise and a performance management programme will always provide an objective guide, at this level, the outcome of individual negotiations between the board of directors and senior management are a critical factor. Hence, market rates remain a determining element.”
He also stated that the remuneration policy for senior management sets the tone of the remuneration policy for the rest of the company.
To order a copy of the Misco Executive and Remuneration Board Report, e-mail Ms Xerri at rxerri@miscomalta.com.