Executive incentives: amendments to the Corporations Act are a critical issue for ASX equity plans
Effective incentives help to focus executives and employees on the results that contribute to business success, and to align their behaviours with shareholder interests. Also, the “two strikes” rules on remuneration report voting makes the design of executive incentives a sensitive issue for ASX listed companies. Thus incentives are one of the most critical remuneration components that ASX companies must get right.
Amendments to the Corporations Act mean new compliance requirements have come into effect from 1st October 2022. All current incentive plans that use equity instruments should be reviewed and in almost all cases amended to ensure compliance with these new provisions during this transition period.
Speak to one of our consultants to understand if your current executive incentive plans need to be reviewed to comply with new regulations.