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
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.
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.
The NZX has released the final version of its updated corporate governance code, including recommendations for increased disclosure of executive remuneration.
The Agenda is our must-read summary of issues concerning Boards of Directors and Government.
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.
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.