Statement of Corporate Governance Practices (continued)  Evaluation of Performance  Remuneration  Legitimate Interests of Stakeholders  HARVEY NORMAN HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES – ANNUAL REPORT 2003  15  The Company has established a code of conduct to guide compliance with legal and other obligations to legitimate  stakeholders in the Company.  The remuneration of non-executive directors is different from that of executives. Executive directors are remunerated  by means of a salary, and in certain cases by equity based remuneration. All equity based remuneration is made in  accordance with plans approved by shareholders. Non-executive directors are not entitled to any retiring allowance,  payable upon their retirement as a director of the Company.  The Company has established a remuneration committee, consisting of four non-executive directors, one of whom is  an independent director. The function of the remuneration committee is to make recommendations to the Board on  remuneration issues. The Company believes that the individuals on the remuneration committee can make, and do  make, quality and independent judgments in the best interests of the Company on remuneration issues,  notwithstanding that all the members of the remuneration committee are not independent.  The Company attempts to ensure that the level and composition of remuneration is sufficient and reasonable and that  its relationship to corporate and individual performance is defined.  The performance of committees, individual directors and key executives is evaluated regularly by the Board. The  Board regularly evaluates the performance of the Board.