When does the Tribunal determine additional fees for sub-committees?
The Tribunal does not routinely set fees for sub-committee work. Often sub-committees are simply one way that boards and other entities choose to allocate the workload in relation to the primary functions of that entity.
The Tribunal has set audit fees for some bodies recognising that there are often significant responsibilities and additional commitment related to these committees. The Tribunal has also set additional fees for a small number of other sub-committees of governing boards which undertake or support a key component of the board’s governance responsibilities.
Where it is considered that additional fees are warranted a submission can be made to the Tribunal. The submission would need to comment specifically on why the Tribunal should not consider the functions of the sub-committee to be part of the entity/board's usual functions.
The following points should be addressed in a submission, i.e. whether:
- the committee has formal ongoing governance functions;
- the committee’s work represents a key component of the board’s governance responsibilities;
- the committee’s work has a significant impact on organisational strategy and viability;
- the fee paid to board members is insufficient compensation for the level of responsibility and commitment required of sub-committee members; and
- additional fee arrangements are currently in place, or proposed, for audit committee members.