The 2017 and 2018 reporting periods have seen increased shareholder activism, changes in emphasis and priorities expressed by institutional investors and proxy advisors, and a sense of urgency in addressing issues arising from the Hayne Royal Commission which are clearly observed as extending beyond the Financial Services Sector.
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.
What role should incentives play in rewarding senior management?
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.
The Agenda is our must read summary of issues concerning Boards of Directors and Government.
How can companies ensure their executives maintain a customer focus without sacrificing financial results?
It’s not always necessary, or indeed desirable, for companies to follow the herd when developing their remuneration framework. We examine examples of companies that have adopted non-traditional incentive plans.
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.
CEOs of small companies are by no means guaranteed an annual bonus.
The Australian Senate passed changes to the taxation of employee share schemes (ESS) on 25 June with no amendments.