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Remuneration of members of the supervisory boards in Ukrainian joint-stock companies is the most controversial issue of the corporate board practices. Despite the firm belief of the shareholders that the director remuneration is one of the most important factors influencing the board performance, there are still many companies (21 per cent) where directors are not remunerated for their work on the supervisory board. The situation with the remuneration of the directors in Ukraine is coming to the turning point. Thus, there is a strong trend toward the point of view that the outside directors should be remunerated certainly. There are only 3 per cent of outside directors on the supervisory boards of Ukrainian companies who are not remunerated for their work. At the same time the situation around the inside directors is not clear. There are still many inside directors (23 per cent) who are not rewarded for their work on the board at all. Despite those factors that could be negative describers of the director compensation practices in Ukraine there are certain director remuneration practices that could be freely and reliably described. These are: size of the remuneration; structure of the remuneration; frequency of payments; assessment of the director performance.

A practitioner’s research: Director remuneration in Ukraine