Godfrey Remuneration Group, independent expert remuneration consultancy in Australia

Short and long term incentives

  • 15Analysis of ASA Guidelines

    May 2009

    The Australian Shareholders Association (ASA) has released a policy statement dated 23 March 2009 titled Executive Remuneration. This statement is to be applied for financial years ending 2010 onwards. Thus, it will apply to financial years commencing in 2009. The delayed application is presumably intended ...

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  • 14Changes to Terminations Benefits

    Apr 2009

    On 18 March 2009, the Federal Treasurer and the Minister for Superannuation & Corporate Law in a joint Media Release indicated that the Government would amend the Corporations Act to significantly lower the threshold at which termination payments must be approved by shareholders from the current level down to one years average base salary...

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  • 12Review of STI practices

    Feb 2009

    The aspect of executive remuneration that has received the most commentary in relation to the global financial crisis has been short term incentives (STIs). This article seeks to comment on STI practice in Australia and provide guidance on those aspects where improvement may be needed ...

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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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  • 9LTIs and Changes in control, capital reorganisation

    Oct 2008

    GRG has recently had cause to focus on the early vesting provisions of executive long term incentive (LTI) plans. Early vesting provisions generally include: Those occurring during employment being change-in-control (CIC) situations relating to ...

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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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  • 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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