The decade since the Global Financial Crisis can be regarded as one of considerable change in relation to incumbency and reward.
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?
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.
Listed companies adopting deferral as an element of their annual incentive plan use varying equity instruments to match the deferral incentives.