Egan Associates investigates the use of options among companies of varying size and sector as well as over time.
The Importance of Discretion
It is unusual in current times to observe short or long term incentives where the award is determined solely at the discretion of the Board. However, discretion has far from lost its place in incentive payments and policy.
STI Deferral in Volatile Markets – Industry by Industry Analysis
Given recent volatility in the share market, Egan Associates has fielded a number of queries from Boards about the risks and benefits of STI deferral to their executives.
Should Companies Account for Dividends when Granting Equity?
Egan Associates considers whether the value of shares to be granted under incentive plans should be adjusted to account for foregone dividends.
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.
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.
Managing STI Deferral
Listed companies adopting deferral as an element of their annual incentive plan use varying equity instruments to match the deferral incentives.
Clawback Gains Global Momentum
The UK and US have announced new clawback requirements, expanding uncertainty for executives on whether earned bonuses and long term incentives will remain theirs to keep.