Managerial remuneration refers to the compensation and benefits package offered to managers and executives within a company. This includes a base salary, bonuses, stock options, health insurance, retirement plans, and other perks. The goal of managerial remuneration is to attract and retain top talent, motivate managers to perform at their best, and align their interests with those of the company.
The Companies Act, 2013 does not provide a definition for "Managerial Remuneration," but it is commonly used to refer to remuneration paid to a managerial person. The Nomination and Remuneration Committee is responsible for developing the criteria for evaluating the qualifications, positive attributes, and independence of a director, as well as recommending policies regarding remuneration for directors, key managerial personnel, and other employees. The remuneration paid to directors, key managerial personnel, and senior management should reflect a balance between fixed and incentive pay that reflects short- and long-term performance objectives appropriate to the companys operations and goals.
