File Attachment(s) Reserve for IOD Member Only Compensation Committee Best Practice Guideline [ 2,667.06 kb. ]

To assist companies in complying with new legal requirements and corporate governance framework, greater demands are falling on directors to be more effective. As directors are required to allocate more time to perform their responsibilities, setting remuneration for directors are of greater importance. To attract, motivate and retain high quality directors, the levels of remuneration should be sufficient. The board should, therefore, establish a Compensation Committee to engage in the aforementioned remuneration-setting process.

As an organization dedicated to improving director professionalism and corporate governance in Thailand, Thai Institute of Directors Association (IOD) issued the Director Compensation Best Practices in 2006. However, the roles of directors nowadays are changing. To comply with the new legal requirements and corporate governance guidelines, the amount of work required of them has substantially increased.

To determine the appropriate form and amount of director remuneration, all these factors have to be taken into account and remuneration decisions should be based on sound principles and a transparent process. Thus, IOD deems it appropriate to improve this practice to align with the changing governance landscape.