Increase In Regulated Companies Driving Senior Management Salaries Upwards
Recent market developments in Malta have continued to bring about an increase in salaries for senior management roles in regulated and large companies. These 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.
This is one of the most salient points that emerges from MISCO’s 4th edition of The MISCO Executive and Board Remuneration Report, a guide for organisations to use as they design an appropriate remuneration framework for their senior management roles.
This report was compiled exclusively by MISCO based on extensive research amongst 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.
It also provides insight into additional remuneration components that make up the total packages to help organisations ensure that their reward policies and practices are both practical and relevant to today’s labour market.
“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 constant 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,” says Lawrence Zammit, Founding Partner of MISCO.
“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 who are in possession of the right skills set, aptitudes and knowledge to fulfil the responsibilities of complex and challenging roles,” added Lawrence Zammit.
Joanne Bondin, Director at MISCO added that 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.”
“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 nevertheless, there are frameworks that help stakeholders develop executive remuneration policies, practices and structures. Having access to robust and up-to-date market information is also essential in accomplishing this objective,” added Joanne Bondin.
MISCO remains committed to continue building partnerships with its clients by helping them understand Malta’s labour market environment and providing expertise that supports organisations in attaining their organisation’s goals.
“We encourage organisations to take a multi-faceted approach when determining their pay structures by using important yardsticks that facilitate this process. We support this report through a range of consultancy services which include employer branding, organisational design, job evaluation, analysis of training needs, measuring employee engagement, development of a performance management system and reward management,” concluded Ms Bondin.
To order a copy of The MISCO Executive and Board Remuneration Report contact us on 22054000 or firstname.lastname@example.org