Compensation committee rules: key management pay set by committee under Board norms, MD remuneration needs Board approval. Regulation 27 requires a compensation committee, chaired and majorly composed of public interest directors, to determine key management personnel compensation under a compensation policy conforming to Board norms; managing director pay requires Board approval and cannot be changed without prior Board consent. Compensation must be disclosed in the annual report under section 217 of the Companies Act, 1956, and the tenure of key management personnel other than directors is to be fixed by the compensation committee.