The forensic examination of documents by the Hayne Royal Commission is likely to lead to additional demands being placed upon Remuneration Consultants and Board Remuneration Committees.
When it comes to executive remuneration there are multiple stakeholder commentators including government institutions such as ASIC and APRA, universities and think-tanks, remuneration consultants, proxy advisors, retail and institutional investors to name a few.
There has been a significant increase in the number of ASX 300 companies receiving a strike against their remuneration report in the 2018 AGM season, with fifteen companies overall receiving strikes compared with six in 2017.
In considering executive reward, stakeholders, be they shareholders, the Board, management, regulators or proxy advisers/consultants, often review information through a lens different to that of the Executive.
Two recent shareholder-initiated strikes, one at Telstra and the other at Tabcorp, potentially reflect different foundations leading shareholders to vote against their Remuneration Reports.
Our review of Non-Executive Directors’ (NED) remuneration covering the ASX 300 and the NZX 50 through to the end of the 2017 calendar year reveals generally modest fee increases.
Senior executive’s fixed or come-to-work remuneration among Australia’s leading companies has been in decline over the last decade.
This article was triggered by an enquiry from Patrick Durkin of the Australian Financial Review, responding to comments by the former Treasurer, Wayne Swan, that Chief Executive pay is “out of control”.
Remuneration planning over the coming two years
Fair Work Commission’s decision on the minimum wage.
Does top pay attract the most capable?
Tax concessions for major corporations
Board renewal & effectiveness reviews
When ASX listed companies seek independent counsel on remuneration issues, remuneration advisers can find themselves faced with numerous scenarios which can result in conflict with a departing Executive, especially where the level of compensation as part of a separation or nominal resignation is being discussed.