“We are drafting a policy for approving expenses for plc directors and would welcome advice from other companies as to who approves and authorises expenses of the following:
Chairman
Deputy Chairman
Chief Executive
Chief Financial Officer
Chairman of Remuneration Committee
Chairman of Audit Committee
Non-executive directors.”
0
Chairman authorises CEO’s expenses. CEO authorises the rest.
Chairman for CEO. SID for Chairman. Co Sec for NEDs. CEO for EDs.
CEO and SID signs off Chairman, Chairman signs off CEO, CEO signs off rest of directors and every 6 months a schedule of all the directors’ expenses is reported to the Board. Expenses are paid when directors’ fees are paid.
The Company Secretary approves the expenses for the Chairman and NEDs although this can be the CEO. The Company Secretary signs off on the CEO’s expenses.
Exec directors are approved by the CEO.
Annually the Remco reviews the expenses claimed.
Expenses for all ED’s are approved by the CEO/Chairman
Chairman/CEO expenses are approved by audit or remcom chairman
NED expenses are approved by Co Sec.
We have management approve expenses and schedule reviewed by Audit committee every 6 months or at time of revieweing the interim and annual accounts.
The Chairman’s and all NEDs’ expenses are signed off by the Company Secretary; the CEO by the Remuneration Committee Chairman and the FD and other executive directors by the CEO.
All Non-executive Director expenses are signed off by the Company Secretary/General Counsel but can be signed off by CEO or CFO. Executive Director expenses are signed off by the CEO or CFO as appropriate but can be signed off by the Company Secretary/General Counsel.
These expenses are seldom anything other than travel/subsistence and occasional modest entertaining. If something outside normal business expenses were to be presented, this would be elevated to Remco Chairman/SID.
Chairman signs CEO, CEO signs FD. Co Sec signs Chairman & NEDs, and Chairman reviews NED expenses twice per year.
Chairman approves CEO, SID approves Chairman, CEO approves FD and FD approves non execs. Once a year the Remuneration Committee sees a summary schedule of expenses claimed by directors.
Our policy is as follows:
Chairman approves NEDS and CE
SID approves Chairman
CE approves executive directors
Remuneration Committee