Introduction
We are pleased to share highlights of the results of our Survey of Non-executive Director Remuneration within the NGX Top-30 (30 most-capitalised companies on the Nigerian Exchange). The Survey which covered the Board Chairman and Other Non-Executive Directors (NEDs) was launched to achieve the following objectives:
• provide valuable information on remuneration levels andpractices
• enable the Board determine competitiveness of NED pay
• support alignment with corporate governance requirements in respect of Director remuneration
• contribute to the development of reward practices in Nigeria.
Corporate governance remains a critical pillar for any organisation to achieve its business goals and objectives and a company’s Board of Directors is responsible for ensuring compliance with good corporate governance practices which are pivotal to business growth and sustainability.
Given the increasing complexity of the business environment and the demand on Directors’ time, a competitive Board Remuneration Strategy has become even more critical in attracting, retaining and motivating competent Directors with the requisite skills, network and experience. For the Board to recommend an appropriate remuneration framework, they require reliable market data and insights. This will support alignment with current realities while ensuring pay affordability and sustainability.
Through its various compensation survey initiatives, KPMG provides insights into market practice on remuneration levels and practices across different employee categories, as well as for NEDs, in various industries.
Profile/Demographics of Survey Participants
• The survey covered 77%1 of the NGX Top-30, i.e., 23 companies across the financial services, consumer markets and oil and gas sectors of the economy. Organisations within the Financial Services industry constitute close to half (47.8%) of the data set while companies within the Consumer & Industrial Markets comprising Fast Moving Consumer Goods, Cement Manufacturing and Telecommunications companies make-up 39%.
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