Remuneration of members of the Executive Board – is the current arrangement optimal
The members of the Management Board may perform their duties on the basis of various titles - employment contract, appointment or civil law contract. Among other things, the tax consequences depend on the type of contract.
Each of these forms not only creates a different relationship between the board member and the company, but is also subject to different types of social and health insurance contributions, which in turn translates into the amount of burdens borne by both the board member and the company.
The situation is even more complex if the board member, in addition to his or her functions related to the management of the company, provides services of a different nature to the company – e.g. advisory or expert services that go beyond management. In such a case, it is possible to perform tasks on the basis of more than one title (e.g. combining the function of a member of the Management Board on the basis of an appointment with the provision of services on the basis of a cooperation agreement).
In light of the above, it is worth reviewing the current forms of involvement of the members of the Management Board in order to verify which form of involvement is most appropriate and reflects the actual scope of the activities performed by the members of the Management Board.
In this respect, we are at your disposal and offer our support in recommending an appropriate form of engagement or division between different forms of cooperation.