Ernst & Young InSights identifies 4 areas where audit committees can advise and support boards

A new Ernst & Young InSights identifies four areas where audit committees can advise and support boards in providing an oversight of the remuneration of senior leaders. Although audit committees haven't traditionally played an active role in this area, there are signs that this might change. Executive compensation is attracting media interest and is becoming a key area of reputational risk for companies.

Four specific roles for audit committees in remuneration oversight highlights these four areas for potential audit committee involvement:
- ensuring links between pay and risk are understood
- helping to link pay plans with strategic company goals
- providing insight into complex metric and accounting issues
- taking a broader review of remuneration disclosures

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