Enhancing Board Effectiveness

19Director Remuneration in Developing and Emerging Markets (DEMs)

Issues, Challenges and Prospects

Franklin N. Ngwu

1. Introduction

With increasing competition, globalization and inter-connectedness of societies and economies through the activities of firms, the tasks of board of directors (BODs) are increasing and more demanding. While they are still required to help resolve the inherent agency problems of firms, they are also required to robustly manage the concerns and interests of other stakeholders. BODs are therefore expected to be involved in both internal and external issues that might affect the sustainable growth and performance of their firms. Of the many responsibilities of the BODs, such as director nominations, executive compensation ...