Determining an appropriate remuneration package for executive and non-executive directors presents several challenges. Legal, tax and social security considerations must be taken into account for the company, while the package still has to be competitive in the market to attract the best candidates. Management companies, long-term incentive plans, the retrocession of directors fees and international tax treatment are common issues facing organisations when deciding on an executive’s remuneration.
From a broader perspective, many shareholders and members of the community are questioning the levels of executive pay. There’s ongoing pressure to demonstrate sustainable links between pay and performance through long-term equity. Combine all these elements with an increase in regulatory interventions and the discussion quickly becomes complicated.
Our tax and social security specialists can help define the ideal pay structure for your executive and non-executive directors. They’ll also optimise the remuneration package so that it meets all legal, tax and social security requirements in Belgium and overseas.
Furthermore, our multidisciplinary team can help with a fundamental review of your executive pay framework. With a fresh perspective on the state of rewards, we help organisations stay one step ahead of external changing expectations and corporate governance regulation. Our approach incorporates insights from our yearly executive remuneration benchmark survey for Belgian executive and non-executive directors.
Our Corporate Governance and Executive Pay report sheds light on some of the current trends in executive remuneration. PwC and Diligent Institute take a closer look at the 2021 proxy season of 54 companies in Belgium and Luxembourg.
Benchmarking matches internal jobs with market pay data, by using a salary survey aiming to identify the market pay rate for each position. It’s a vital component of your organisation’s talent management strategy and contributes to your employee engagement strategy.
Bart Van den Bussche
Director, PwC Belgium
Tel: +32 474 23 93 48