Understanding Risk Management and Compliance, What Is

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Because directors set their own compensation, the following practices should be emphasized: 6.2a Total Compensation Review: The compensation committee should understand and value each component of director compensation and annually review total compensation potentially payable to each director. 6.2b Outside Advice: Committees should have the ability to hire a compensation consultant for assistance on director compensation plans. See below additional information concerning the corporate governance of ABB.

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