We note that in reports of early November, the Workplace Gender Equality Agency (WGEA), using ABS data, revealed that the national gender pay gap presently stands at 14.6%, the lowest in twenty years. The WGEA noted that the gap had hovered between 15% and 19% over the past two decades.
The 2017 and 2018 reporting periods have seen increased shareholder activism, changes in emphasis and priorities expressed by institutional investors and proxy advisors, and a sense of urgency in addressing issues arising from the Hayne Royal Commission which are clearly observed as extending beyond the Financial Services Sector.
The past 10 years has highlighted that movement in Average Weekly Ordinary Time Earnings (AWOTE) are almost twice that of the movement in the Consumer Price Index (CPI).
In considering executive reward, stakeholders, be they shareholders, the Board, management, regulators or proxy advisers/consultants, often review information through a lens different to that of the Executive.
Two recent shareholder-initiated strikes, one at Telstra and the other at Tabcorp, potentially reflect different foundations leading shareholders to vote against their Remuneration Reports.