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.
Independence and Conflicts of Remuneration Advisers
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.
Strikes Against the Remuneration Report – 2017 AGM Season
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 Dilemma with Incentive Structures
An important role for the Board Remuneration Committee is to establish clarity with executives and shareholders around the primary levers that would support additional remuneration