As the 2015 AGM season draws to a close and a new year begins, Boards may be reflecting on recent shareholder feedback and re-evaluating their termination policies. In light of this, we have provided an overview of the current terminations benefits regime.
2015 AGM Season Overview
Remuneration issues have been high on the agenda this annual general meeting season as shareholders sought explanations on the quantum of Executive pay and pay for performance alignment.
The Board and its Advisor: Can their Viewing Point Become a Moral Dilemma?
A key question for Boards, Executives and their advisors relates to the appropriateness of reward policy strategies in an uncertain economic climate.
Superannuation – Are Executives Funding their Retirement?
It is our observation that wealth creation and provisioning for a comfortable retirement is in part being supported through public company executive participation in equity based incentive plans.
CEO Pay for Performance
This AGM season Boards will be looking to ensure that short term incentive plans are consistent with institutional investor and proxy advisor expectations of pay for performance. Egan Associates has explored the link between short term incentive payments for CEOs and company profit improvement in the ASX 100.
Realised Pay a Focus of ACSI Survey
ACSI’s 2014 study of CEO pay in the S&P/ASX200 is the first to include comparisons of realised and reported pay for all CEOs in the sample.
KMP Report No. 16 : 2015 AGM Season Proxy Advisor Views
We have prepared a summary of updated proxy advisor and institutional investor views for your reference.
SEC Approves Pay Ratio Disclosure Rule
Almost two years after its initial proposal, the United States and Securities Exchange Commission (SEC) has approved a rule that requires a public company to disclose the ratio of pay of the CEO to the median compensation of its employees.
Gender Pay Equivalence
While equal reward for equal work represents a desirable social policy, measuring equality of both inputs (accountability and working conditions) and outputs (the value of experience, competencies and performance) adds complexity which must embrace acceptance of a limited differential favouring either gender.
Managing STI Deferral
Listed companies adopting deferral as an element of their annual incentive plan use varying equity instruments to match the deferral incentives.