What role should incentives play in rewarding senior management?
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.
Egan Associates have been guiding privately owned and listed public companies with their incentive plan design and review for over 30 years. In this article, we summarise some of the questions that we get asked on a regular basis in relation to long term incentive design.
Among the top 300 listed companies by market capitalisation*, there were six companies that experienced a significant shareholder vote against their Remuneration Report during the final quarter of the 2017 Annual General Meeting season.
An important role for the Board Remuneration Committee is to establish clarity with executives and shareholders around the primary levers that would support additional remuneration for key achievements during a Financial Year. What has emerged in recent years are concerns expressed by shareholders around the level of annual incentive payments, the performance criteria supporting incentives,… Read More