Our last research report dealing with the cost of governance was published in July 2014. Recent discussions arising from our advisory work and highlighted in Board responses from comments made by institutional investors and their advisers and issues recently arising in the Royal Commission into the financial services sector, have made several supplementary issues front and centre.
CEO Reward – Comment on Exceptions
Senior executive’s fixed or come-to-work remuneration among Australia’s leading companies has been in decline over the last decade.
Governance: Front and Centre
Egan Associates has received many and varied requests from clients to advise on governance.
CEO Pay Increases Over the Past Decade
This article was triggered by an enquiry from Patrick Durkin of the Australian Financial Review, responding to comments by the former Treasurer, Wayne Swan, that Chief Executive pay is “out of control”.
Criticality of Board Capability
Having reviewed the statement prepared by the ASX 200 Boards in relation to Director capability, incorporating skills and experience, we have noted indicatively two approaches.
Fair Work Commission – 2018 Minimum Wage Decision
On June 1st 2018 the Fair Work Commission increased the minimum wage by 3.5%.
Issues on the Mind of Boards, CEOs and their Advisors
Remuneration planning over the coming two years
Fair Work Commission’s decision on the minimum wage.
Does top pay attract the most capable?
Tax concessions for major corporations
Board renewal & effectiveness reviews
Governance and Pay: Ministers and Board Chairmen
With comments from proxy advisers, major institutional investors and shareholder activists questioning Directors’ (particularly Chairmen’s) capacity, to serve on more than three or four Boards for which they will often receive more than $1 million in annual fees, the community should not be aggrieved with the level of reward paid to our Prime Minister, our Premiers or our Ministers.
Our Leaders’ Challenges and Stakeholder Expectations – A View Point
Australia is facing new challenges and opportunities within the shifting patterns of international trade and the security of its commercial foothold and viability both locally and globally.
Short Term Incentive Risk Aversion in Boards
Boards, shareholders and proxy advisers are increasingly engaged in oversighting any company activity which fails to account for its exposure to risk, including short term incentive plans.