Godfrey Remuneration Group, independent expert remuneration consultancy in Australia

Short and long term incentives

  • 43TSR Assessment for LTI Purposes

    Oct 2012

    Boards have great difficulty in selecting the approach to be applied to assessing TSR performance. It is important for the TSR assessment approach selected to be directly aligned with shareholder/investor expectations so that vesting can be calibrated to those expectations. In the Remuneration Report the vesting of LTI grants and company performance should be shown to be in alignment.

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  • 42PEPOs Unexpectedly Face FBT

    Sep 2012

    The Australian Taxation Office ATO has recently released an interpretation of the taxing laws which accepts that such PEPOs have a no taxable value for ESS taxing purposes but maintains that they are not exempt from fringe benefits tax (FBT) and have an FBT taxable value for which companies are liable for FBT.

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  • 37Incentive Reporting Review, Two Strikes and TSR Alpha’s Advantages

    Apr 2012

    Section 300A of the Corporations Act specifies the minimum disclosure requirements for Remuneration Reports of ASX listed companies in relation to key management personnel (KMP). However, these are seen as not sufficient by many and some companies have gone further, pre-empting proposed Corporations Act amendments...

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  • 36Strike Back On LTI Vesting Conditions

    Feb 2012

    Over the next few months boards will, in the context of the "two strikes" shadow, be reviewing many aspects of key management personnel (KMP) remuneration. One area with which most companies seem not to be satisfied is the metrics used for vesting of LTI grants ...

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  • 35Preliminary Observations on First Strikes

    Jan 2012

    The recent round of annual general meetings (AGMs) saw a number of companies receive their "first strikes" (25% or more negative votes on the Remuneration Reports...

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  • 34Righting Some Wrong in the Executive Pay Debate

    Jan 2012

    GRG is of the view that the TSR Alpha concept represents a significant step forward in the executive remuneration debate and ofers a way to address problems associated with traditional long term incentive plans particularly the use of relative TSR as a performance measure...

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  • 33STI Plans – alignment and disclosure

    Nov 2011

    Recent press articles on key management personnel (KMP) remuneration disclosures in Remuneration Reports seem to expect that disclosed remuneration levels from one year to the next should be lower if shareholder value has declined. Boards are often criticised and remuneration strategies tagged as not working when disclosed remuneration levels have not fallen in line wiht falls in shareholder value. The rationale for such views seems to be that there is only one measure of performance over the short term...

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  • 32Prejudicial Media and Executive Remuneration

    Oct 2011

    With the commencement of the two strikes rule (two successive 25% or more of negative votes on Remuneration Report resolutions means that a third resolution needs to be put to shareholders giving them the opportunity to spill board seats) boards have become concerned to minimise the risk of receiving a strike against their Remuneration Report...

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  • 30A first look at TSR Alpha

    Aug 2011

    The article provides an introduction to a new concept that may be used in relation to vesting of executive long term incentives ...

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  • 29Retirement Benefits and Approval by Shareholders

    Jun 2011

    Under legislation passed in 2009, shareholder approval is required for retirement benefits for executive and managerial officers when the total benefit exceeds one year's base salary ...

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