121The Equity Holding Trend
An emerging corporate practice is the imposition of minimum equity holding guidelines, "equity holding policies", on NEDs and senior executives. But all are not equal, and most do not deal with failure to comply or enforcement. We explore some key variables in the development of these policies and how they may be improved.
120Unlocking the Secret to Long Term Alignment
Executives retaining large equity holdings in their employers promotes genuine long term alignment. However the many obstacles to this encourage the disposal of equity as soon as it vests to pay down an unnecessary tax liability, exposing them to ASIC scrutiny. We identify the obstacles and offer practical solutions for long term equity holding by KMP.
119A Question of Independence
In the light of the Hayne Financial Services Royal Commission, we explore what it means to be independent, and reflect on what it means for our own services and clients.
118Demergers & Long Term Variable Remuneration
Rarely do the rules governing long term variable remuneration (LTVR) plans specifically cover demerger or return-of-capital situations. In this Insight we identify various demerger situations and the principles that should inform possible approaches for consideration by boards under competing pressures from employees, governance commentators, and buyers of the demerged entity.
117Double Standards in KMP Pay: NED Fees
Over recent years NED fee increases have not kept pace with the fixed pay of senior executives, or even general employees. Companies that have not introduced NEPs will soon need to make increases to NED fees significant enough to attract attention.
116Optimising Your Remuneration Report
We look at the best Remuneration Reports observable in the market; hot trends; strategies to manage all the stakeholder pressures; how to streamline the report and ensure compliance – while managing strike risks by maximising votes.
115The Missing Piece
Despite the bulk of the day-to-day execution and monitoring that impact business results being done by middle management and lower level employees, most employee remuneration systems reward the short term only. The "missing piece" might be the transformation of employees into shareholders, encouraging a longer-term view.
114ASX300 GEEP Market Practices
As company size grows, use of GEEPs increases. In this Remuneration Insight we present the findings of our extended analysis of observed market practices in relation to general employee equity plans (GEEPs) usage in the ASX300.
113ASX100 GEEP Market Practices
This Insight presents the findings of our extensive research related to the practices of the ASX100 companies, which may indicate the impact of the planned Commonwealth legislative changes on the incidence of GEEPs.
112$1,000 Tax Exempt Plan (TEP)
This series of five GRG Remuneration Insights deals with General Employee Equity Plans (GEEPs) which are made available to most full-time Australian employees, and some part-time employees, and often operate on a salary sacrifice basis with matching by the company. There are four basic GEEP types. This Insight provides an outline of the main design features of the $1,000 Tax Exempt Plan (TEP).