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Some companies pay retirement benefits to non-executive directors. What is AICDs view?

April 26, 2017aicd companies Directors non-executive pay retirement benefits view

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Some companies pay retirement benefits to non-executive directors. What is AICDs view?

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AICD does not encourage the payment of retirement benefits to non-executive directors as it believes that director’s remuneration should be linked to their performance whilst serving on the board not their length of service. Section 200G of the Corporations Act discusses the payment of retirement benefits to directors by public companies. For further information see the AICD Issues Paper 02/03 ‘Non-executive director remuneration’ at www.companydirectors.com.au under Policy and Information/Policy and Advocacy.