Over the past decade the average level of market capitalisation of a top 100 company increased from less than $4 billion to $12 billion, with profits escalating from around $350 million to an average in excess of $1 billion.
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Executives are not isolated from the broad market pressures affecting many constituents and certainly all investors. To profile an executive as an individual isolated from the current economic environment reaping substantial rewards from employment, in our judgement is an inaccurate depiction of the times. Read More
Traditionally there has been at the level of CEO and direct reports a strong correlation between base pay, annual revenues and market capitalisation and an even closer relationship to total reward (that is fixed pay plus annual bonus plus the value of long term incentives), and growth in market capitalisation and a company’s level of profitability.
Egan Associates has over the last twenty years since the Corporation Law required comprehensive disclosure, compiled research data on non-executive directors’ emoluments, board demographics and related information.
Government leaders and their advisors internationally have recently expressed concern about the reward levels of those involved in financial markets which are embroiled to a greater or lesser extent in the global liquidity and credit crisis now being experienced and its flow-on effect to the capital markets.