Traditionally there has been at the level of CEO and direct reports a strong correlation between base pay, annual revenues and market capitalisation and an even closer relationship to total reward (that is fixed pay plus annual bonus plus the value of long term incentives), and growth in market capitalisation and a company’s level of profitability.
Regulation & Control of Executive Pay
Government leaders and their advisors internationally have recently expressed concern about the reward levels of those involved in financial markets which are embroiled to a greater or lesser extent in the global liquidity and credit crisis now being experienced and its flow-on effect to the capital markets.
Managing Salary Increases
In recent years executives and senior management have been the beneficiaries of regular annual adjustments to their fixed remuneration.
Equity Plans – Mind the Gap
Egan Associates have observed among Australia’s leading companies significant variation in the manner in which equity based incentives are valued and allocated to senior executives as part of their total reward package particularly in relation to the reward intent understood by boards