remuneration

hi mike,

what is the meaning of this statement?

The remuneration committee should judge where to position their company relative to other
companies. But they should use such comparisons with caution, in view of the risk of an
upward ratchet of remuneration levels with no corresponding improvement in corporate and
individual performance, and should avoid paying more than is necessary.

is the statement is saying about level of remuneration should sufficient to retain, attain and motivate directors?