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.
The Australian Securities & Investments Commission issued Report 564 in January this year.
Among the top 300 listed companies by market capitalisation*, there were six companies that experienced a significant shareholder vote against their Remuneration Report during the final quarter of the 2017 Annual General Meeting season.
The first Newsletter of the 2018 calendar year provides not only comment on contemporary issues, but also includes comment on the 10 most popular articles over the last 60 editions of our Newsletter and the most widely read Key Management Personnel Reports (KMP Reports) of the past 5 years.
The NZX has released the final version of its updated corporate governance code, including recommendations for increased disclosure of executive remuneration.
We discuss the simple process companies should follow to minimise the likelihood of a strike at their next AGM.
Egan Associates considers how disclosure requirements could be improved to enable a more informative, yet concise remuneration report.
2016 has been the year of the high-profile strike, with the list of companies receiving an adverse remuneration report vote reading like a who’s who of corporate Australia.
Five years after the introduction of the two strikes rule, it’s a good time to reflect on the legislation’s effectiveness in ensuring reasonable executive remuneration.