Our Insights on: governance, strike risk management, communications and stakeholder issues.
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11LTIs and Discounted Rights Issues
Jan 2009
Capital raising rights (CRRs) issues are a common occurrence which may increase in frequency as companies seek to bolster their balance sheets in the current global financial crisis. These share issues are normally at a discount to the market share price...
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10Executive Pay in a Downturn
Nov 2008
At the time of writing this article there has been considerable comment and reaction in relation to what has been perceived as the possible role of executive remuneration in contributing to the current global financial crisis ...
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8ASX Response to Options for NEDs
Sep 2008
In GRG Remuneration Review No 6 Options for Non-executive Directors which was published in April 2008 it was pointed out that the Australian Securities Exchange (ASX) had been approached seeking clarification of the treatment of share options and other equity units in relation to aggregate fees limits (AFL)...
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7LTIs vs STIs and Accounting Charges
Jul 2008
A comment that is currently circulating is that companies are moving out of long term incentive (LTI) plans and into larger short term incentive (STI) plans. Our experience is that this statement is generally not true in relation to top executive roles but ...
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6Why Options Should be Provided to NEDs
Apr 2008
This article discusses the provision of equity units (shares, rights and options) as part of nonexecutive director (NED) remuneration. This is an area that has started to attract media attention and commentary from various stakeholders ...
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5Accounting for and Calculating LTIs
Oct 2007
Recent consulting assignments have indicated that some directors have found the accounting standard for Share-based Payment (AASB 2) to be complex and are finding it difficult to translate long term incentive (LTI) values disclosed in Remuneration Reports into competitive grants of options, rights or restricted shares ...
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4Institutional Investor Perspectives on Executive Remuneration
Jun 2007
In April 2007 Institutional Shareholder Services Pty Limited undertook a survey on behalf of a small group of six sponsors. GRG was one of the sponsors and saw that sponsoring such a survey would help in keeping abreast of the latest views of institutional shareholders who are important and influential stakeholders in the area of executive remuneration ...
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3Reviewing CEO Remuneration
Jun 2006
Stakeholder interest, greater transparency and corporate governance considerations have lead to Boards paying greater attention to the process of reviewing CEO remuneration. While advice from independent specialist firms of remuneration advisors is important it remains incumbent upon Boards to ensure that they critically review the advice and satisfy themselves as to its appropriateness to the company's circumstances before they make decisions on CEO remuneration packages ...
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2Changes in the Use of Options
Mar 2006
Now that the hysteria surrounding options has dissipated it is perhaps timely to review which executive equity based long term incentive plans are most appropriate to company circumstances. Separate papers will be prepared on specific aspects such as performance hurdles, allocations, taxation implications and accounting charges ...
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1Basics of Remuneration Report Preparation
Oct 2004
Although most companies have remuneration strategies they often have not been formalised into written policies and may not have been critically reviewed for some time, recent amendments to the Corporations Act require listed companies Remuneration Reports to ...