King IV - Advisory votes times two

Thankfully King IV did not suggest that the non-binding advisory vote on remuneration as set out in King III should become a binding vote. Instead King IV introduced another non-binding advisory vote on the implementation report of the remuneration policy.

In addition, King IV takes another big step forward by advising that a predetermined policy should be included in the remuneration policy that sets out the steps in case more than 25% of voting members present at a meeting vote against either the remuneration policy and/or the implementation report.

King IV also clarified that the scope of the remuneration policy should include the whole company including non-executive and executive director remuneration as well as the remuneration of the rest of the company. Remuneration in essence should be reasonable, fair and transparent.