-
85Who are KMP and Why?
Jun 2016
The apparent division into two compliance camps of Remuneration Report disclosure of KMP remuneration stems from classification of some executive roles as KMP and others as not. We offer clarification of, and guidance on practical application of, this classification.
-
79Retesting Long Term Incentives
Jan 2016
Retesting of long term incentives (LTI), where executives are given more than one opportunity to meet LTI vesting conditions by changing the measurement period, has not been well regarded by external stakeholders for some time. However, with stakeholder groups calling for LTI measurement periods to be extended beyond three years, an unexpected compromise has emerged, and it involves retesting.
-
77Discussion of TSR Alternatives
Oct 2015
Total Shareholder Return (TSR) has become an essential vesting condition for long term incentive (LTI) grants of equity units because it effectively aligns the interests of both management and shareholders. Here we discuss three ways in which TSR may be used as a vesting condition: absolute TSR, relative TSR using a comparator group of companies, and relative TSR using an accumulation index as a benchmark (not ranked).
-
75Incentive Performance Targets
Jul 2015
We canvas the considerations that need to be taken into account when setting targets for remuneration and aim to develop a consistent, defensible and logical process for target setting as part of the senior executive remuneration process.
-
74Calculating LTI Grant Numbers
Jun 2015
In our last issue we concluded that vesting conditions, if any, can be dealt with as part of the calculation of the numbers of rights to be granted. Here we discuss a formula for those calculations to deliver a given remuneration value.
-
73Valuing Rights
Apr 2015
To promote clarity and consistency in the way that rights (share and indeterminate) are valued, a clear distinction needs to be made between accounting values used for reporting and the values used to determine the number of rights to be granted to participants in equity remuneration plans.
-
70Reconsidering Options
Mar 2015
Recent developments may have prompted reconsideration of the use of options for executive and non-executive director remuneration. The two most relevant changes are those relating to the valuation of options, and taxation of options.
-
69Change of Control
Feb 2015
A change of control occurs when an individual or group acquires control when they did not previously have it. While this definition of control seems to flow from the Corporations Act, many STI and LTI plan rules to have a differently constructed, and narrower, definition which may place limits on the board’s capacity to handle these events.
-
68New Employee Share Scheme Taxing Provisions Released
Jan 2015
On 14 January 2015 Treasury released for public comment drafts of proposed amendments and explanatory materials related to previously announced changes to the employee share scheme (ESS) taxing provisions. Submissions in relation to the proposed changes may be submitted until 6 February 2015. As the amendments are intended to come into effect on 1 July 2015 it may be anticipated that the amendments will be finalised and submitted to Parliament to be passed before the end of June 2015.
-
67Deferring STI Awards
Jan 2015
Organisations from the ASA to the Productivity Commission and APRA have been supportive of deferral of part of STI awards for key management personnel – but the method used can cause concern. Here we examine what STI deferral is, why and how it has been implemented, the effectiveness and finally the fundamental approach that should be applied by company boards.
©2012–2024 Godfrey Remuneration Group | All rights reserved | Privacy | T&Cs | Site by Cyberdog Design
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.