The Institute generally support the broad direction of the proposals in the consultation paper Proposed Amendments to Listing Rules relating to Share Schemes of Listed Issuers to align the regulatory requirements of both share option schemes and share award schemes.
At the same time, in view of the expanded role of remuneration committees envisaged under the proposals, we consider that the spotlight has turned towards the composition, operation and functioning of these committees. In our view, this also needs to be looked at. Issues such as whether there should be a requirement (or, at least, a recommended best practice) for lead independent non-executive director on boards, and whether executive directors should continue to be eligible for appointment to remuneration committees, should be discussed.
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