Board/NED KMP Remuneration

Our Insights on: board fees, committee fees, equity plans, aggregate fee limits, voting patterns and governance issues.

Boards Must Receive Fee Recommendations

149

13 August 2023

Boards are always in a conflicted position with remuneration. NEDs are both the decision makers and the beneficiaries of those decisions, while they must consider good governance and their legal obligations. This Insight discusses why boards must receive fee recommendations from an independent remuneration consultant.

NED Equity: Facilitating More Skin-in-the-Game for Directors

146

3 April 2023

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.

Reasonable Remuneration – Not Just Passing the Pub Test

132

28 January 2021

During 2020 there was heightened public debate about instances of remuneration practices that did not seem to be reasonable and did not meet the requirements for shareholder approval. This responsibility rests with the Board – and breaches can lead not just to reputational damage but fines and disqualifications.

Remuneration and Financial Crisis Management

123

8 April 2020

No business will be immune from the adverse effects of COVID-19 beyond the short term. With lessons from the GFC and the innovations since, we explore the key governance and practical issues for remuneration to be considered by boards and executives in tight times – as well as golden opportunities.

Remuneration Paid in Equities for Non-executive Directors

88

20 September 2016

Significant equity holdings by a company's NEDs are a tax-effective way of strongly aligning their long-term interests and that of shareholders. All ASX listed companies should have an NED equity remuneration plan and potentially an equity holding policy.

Board Membership Profiles and Fees

87

30 August 2016

We examine market practice re the composition of boards between executive and non-executive directors, as well as the male/female mix. We also discuss NED fee levels and aggregate fees limits (fee caps) and their relationship to the number of NEDs on boards.
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