The Remuneration Committee: A Descriptive Analysis of Global Systemically Important Banks (G-SIBs)

Paola Vezzani ()
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Paola Vezzani: University of Modena and Reggio Emilia

Chapter Chapter 6 in Corporate Governance in the Banking and Financial Sector, 2025, pp 105-159 from Palgrave Macmillan

Abstract: Abstract Although the governance and structure of the remuneration systems of top management is assigned to the board of directors, an important role is allocated to the remuneration committee or RemCo. The establishment of RemCo has long been recommended by self-regulatory rules on corporate governance. They conduct monitoring and oversight functions of the financial compensation of directors and executive management and deal with other issues relating to the remuneration policy of the firm. This chapter discusses the role of RemCo in effective business management with particular attention to G-SIBs. The analysis reveals a wide variation in the structure of RemCos which reflects bank size, board size, geographical areas, and internal rules. The average RemCo at the G-SIBs comprises 5 members who are mostly independent directors. On 23.3% of RemCos, women make up at least 50% of the membership and 12 out of 30 RemCos are chaired by women. The average age is quite higher compared to the BoD’s one and the effective average number of meetings in 2022 was 7.6 even if there is a high variability across banks.

Keywords: Remuneration Committee (RemCo); Corporate governance; G-SIBs (Globally Systemically Important Banks); Diversity; Independent Directors (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/978-3-031-83353-3_6

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