Quality of Remuneration Committee: Dimensions and Measurement

Establishment of the remuneration committee (RC) is part of the internal mechanisms to enhance corporate governance practices in organizations. However, the effectiveness of such establishment is a function of the quality of remuneration committee. The attainment of the quality of remuneration committee (QRC) is a pivotal concern in recent years. While quality of tangible goods is often measurable, the quality of remuneration committee like most intangibles is largely undefined and under-researched. This study attempts to provide some insights on the measurement of this quality by developing a model of the quality of remuneration committee (QRC) that is built upon the agency theory, corporate governance and management compensation framework.