What Custodians of Governance Earn
Independent directors should be paid fairly, but the compensation factor should not affect their independence and integrity.
In the world of extreme business complexities, non executive directors (NEDs) protect the interests of shareholders. Independent directors specifically represent the interests of minority shareholders along with other stakeholders and are true custodians of corporate governance. Although executive compensation is most talked about nowadays, independent directors bring their expertise and commitment to the table and should be compensated for the same. The structure of their compensation varies across countries and is influenced by local laws. In India, compensation to independent directors has two broad elements sitting fee and commission. However, some companies
