I have been doing this job for over 18 years now and have entered approximately 6000 remuneration reports. I am starting to question my sanity.
Please help me by passing on my Wish List for Remuneration Reports to the Chair of the Remuneration Committee.
- KISS – my principal wish. When setting out KMP remuneration, keep all the policy and practice data in one section and fully explain the key elements. Keep all the statutory tables in one section.
- When describing the structure of remuneration for Executives – target, maximum, target maximum and stretch target are NOT the same thing. Please communicate target and maximum SEPARATELY.
- For STI cash awards and deferrals to Executives – please advise the total value of the award in relation to the current financial year. Not last year’s award paid this year or this year’s cash award but this year’s total value awarded. I understand that the deferral might not have been granted for the current year yet, but tell me the value and the intended date of award, as I am over having to go through it with the EA Senior Remuneration Analyst to work out what you have done.
- For sign on grants to Executives – be upfront. Tell me straight out. Don’t hide it in the statutory remuneration table with a footnote or in the equity grants. I am going to find it anyway.
- For equity grants – please ensure there is a name/grant date/# of equity instruments and vesting date at a minimum. A plan under which it was granted would be an added bonus.
- For plan descriptions – please keep it to plain English. After all, as IOOF showed this season when shareholders refused to grant CEO Chris Keleher 250,000 performance rights, even the best thought out share incentive plans will fail to win approval if a lawyer writes the script.
- And please, I know this is a lot to ask, but only let KMPs change position on the first or last day of the financial year, anything else creates additional work for me.
Oh and Santa, just between us , I may have become oblivious to the number of zeros in an executive’s pay packet, but wouldn’t mind an extra one or two added to mine. Can you speak to the boss for me?
Your loyal EA Remuneration Report Data Entry Elf