22 Aug Competence Profile of Board Remuneration Committee (REMCO)
We summarise an outline of a practical competence profile which can be adopted and used for appointment, development and evaluation of overall committee effectiveness. There is an appreciation that REMCO members might not have all the competences and experience, but as a collective would complement one another.
For an effective competence profile the REMCO position paper 8 recommended that broad categories as recorded in the table below be used:
|KNOWLEDGE||What people know – technical and/or professional information needed to perform job activities|
|EXPERIENCE||What people have done – practical application of knowledge|
|COMPETENCES||What people can do – a cluster of technical and behavioural competences required|
|PERSONAL ATTRIBUTES||What people are – personal dispositions and motivations that relate to job satisfaction, job success or failure|
This would include and not limited to the following:
- Internal and external challenges experienced and how they can be used to the advantage of the organisation.
- Governance matters and including King IV recommendations.
- Legislative scope and statutory regulations.
- Understanding finances in the sector.
- Culture and values of the organisation inclusive of vision and mission.
- Understanding remuneration, benefits, incentives, etc. in the NGO sector.
- Conflict management as they will experience friction with executives in some cases. For example matching salaries of executives with KPAs. You will not always agree, but to come to some form of resolution.
- Understanding how sustainable growth is achieved through employees.
This would include some of the following:
- Understanding remuneration practices in the sector i.e. NGO sector.
- Worked in Human Resources Department/Unit and with specific understanding of remuneration and its various areas.
- Experience to motivate employees at different levels.
- Corporate governance.
This will include and not limited to:
- Analytical and able to resolve problems.
- Conflict management.
- Monitoring performance and measure against KPAs. Risk/reward relationship management.
- Interpersonal skills.
- Willingness to take unpopular decisions.
Will include some of the following:
- Can make independent decisions.
- Courage to take risks for the benefit of the organisation.
- Conscience – acts honestly and independent for the benefit of the organisation.
- Self-awareness – Self-knowledge of personal strengths and weaknesses.
 Remuneration Committee Competence Profile Position Paper 8