Recent market developments in Malta have continued to bring about an increase in salaries for senior management in regulated and large companies, according to a Misco report.
Senior management roles have expanded and become more complex due to the development of new responsibilities, leading to the creation of more specialised and regulated functions which in turn had an impact on remuneration packages.
The fourth edition of the Misco Executive and Board Remuneration Report was compiled exclusively by Misco based on extensive research among leading organisations in Malta including listed companies, regulated companies and large organisations. Data, collected mainly through personal interviews with company representatives over a span of six months, includes information about the basic and total remuneration packages for a number of positions commonly found at senior management or board level in such organisations.
“Today’s marketplace is a challenging one and employers need to ensure that their reward policies and practices are applicable to the local labour market. Through our exposure to so many diverse clients, we have noted that an increasing number of organisations operating locally are evolving and expanding in such a way that they need to have highly experienced and specialised individuals to run their companies,” said Lawrence Zammit, Misco’s founding partner.
“We also noted how organisation structures have evolved, bringing about the creation of specialised senior management roles and of structured board functions and executive committees. As a result, these organisations had to review their remuneration strategies to offer packages which could help them attract and retain highly talented individuals,” added Mr Zammit.
Joanne Bondin, director at Misco, said having a remuneration committee that brings together individuals to make executive reward decisions is also recommended.
“This committee should ideally consist of independent directors and/or non-executive directors and should be independent of the organisation. The reward policy designed by this structured governance body should seek to attract and retain the best talent, support business strategy, structure and approach to human resource management, reinforce a distinctive organisation culture and management style, and ensure there is no impropriety in the way rewards are given,” she said.
“While executive pay should be designed in a way that aligns the performance of the executives with the organisation’s wider goals and objectives, employers need to be aware that there is no ‘one size fits all’ approach but that there are frameworks that help stakeholders develop remuneration policies, practices and structures. Having access to market information is also essential in accomplishing this objective.”
To order a copy of the report call on 2205 4000 or e-mail advisory@miscomalta.com.