Large companies generally (may be even required to) have a number of standard committees composed of a subset of the board. Two of those are the nominations committee and the renumeration committee. This is considered good company governance.
The Remuneration Committee: - is responsible for reviewing the remuneration policies and practices of the Company as they relate to the Managing Director and Senior Management. - will also overview the application of sound remuneration and employment practices across the Company.
The nomination committee will: - identify individuals qualified to become board members - recommend individuals to the board for nomination as members of the board and its committees - ensure performance of members of the board is reviewed - ensuring an appropriate board and committee structure is in place so that the board can perform a proper review function.
I expect that normal practice is that these committees would hold their own meetings and make appropriate decisions to present to the board as recommendations. The board would then vote on the recommendations.
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