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.
Frequently Asked Questions on LTIs
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.
Strikes Against the Remuneration Report – 2017 AGM Season
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.
The Dilemma with Incentive Structures
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
Reputation – a key KMP KPI?
Reputation is said to be hard won and easily lost. When reputation is damaged in a corporate environment, scrutiny by regulators and shareholders, particularly when it impacts on the bottom line and/or market value, will often increase.
Increased Accountability Important for all Industries, not just Banks
Treasury’s Banking Executive Accountability Regime (BEAR) provides food for thought for every enterprise looking to ensure KMP manage resources in the long-term interests of the organisation.
NZ’s New Corporate Governance Code: Your Questions Answered
The NZX has released the final version of its updated corporate governance code, including recommendations for increased disclosure of executive remuneration.
The Agenda – May 2017
The Agenda is our must-read summary of issues concerning Boards of Directors and Government.
Discretion Guidelines for Remuneration Committees
Egan Associates takes an in depth look at Board Discretion, providing pointers for remuneration committees on how to exercise discretion without risking an adverse remuneration report vote.
Increase the Weight of Non-Financial Measures to Regain Trust
The recommendations of the recently released Retail Banking Remuneration Review directly oppose the stance of many investors, who have become focused on basing executive bonuses predominantly on financial measures.