Options, SARs and SPLPs are valuable instruments for companies expecting significant future share price growth. However recent updates to ESS provisions reclassify them as “contribution plans" imposing strict limits and significant regulatory and disclosure requirements. Any company currently operating or considering an option plan should look at switching to SARs.
This Insight discusses various recent views on NED equity holding policies such as the "2 in 2"; that equity interests must be purchased on joining the Board, possibly with an interest-free company loan; the consequences of misconfiguration of NED equity; and undermining NED independence through the use of options.
When offered to executives, retention and sign-on awards can be viewed as controversial and even inappropriate. With the latest market data we explore the resultant stakeholder tensions and variations which may address their diverse priorities.
Each year GRG analyses the senior executive incentives practices of the ASX300 and publishes the results in the Variable Remuneration Guide to help clients determine whether a deeper strategic review may be needed. We highlight some of the key findings from the latest edition.
New employee share scheme (ESS) provisions in the Corporations Act come into effect for offers made on or after 1 October 2022, while Class Orders (COs) 14/1000 and 14/1001 will cease to apply to new offers. The COs provide various forms of relief from Corporations Act requirements.
Do you need tailored remuneration advice this year, or just an update of market data and movements? Using real, current market data, we illustrate the differences between the approaches, and how you might decide which is best for your business at any given time.
Poor drafting of legislation intended to support widespread use of equity by unlisted companies instead prevented most from developing a compelling ESOP. Complete with a decision tree, this Insight will help you determine whether now is the right time to consider a new ESOP or even a replacement.
From 30 September 2022, recent amendments to the Corporations Act will create a new regime governing Employee Share Schemes (ESSs) designed to remedy the impediments to both listed and unlisted companies trying to introduce an ESS. In this Insight we outline the new regime.
Flaws in many of the various calculations of equity instruments for LTI grants result in inappropriate numbers being granted. To address the issue, GRG has developed a universal formula for this calculation, applicable to LTIs and other purposes.
GRG is a consulting firm that exclusively advises employers on employee pay and incentives for non-executive directors, top executive directors and other employees. GRG does not provide personal financial product advice and does not advise individuals or consumers of investment advice or the management of financial products such as shares or interests in superannuation funds or managed investment schemes.