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Executive remuneration

Executive remuneration2018-11-27T15:06:58+11:00

We have unique expertise in executive KMP remuneration

Established in 2001, GRG has been an independent expert provider of comprehensive executive remuneration services. Our solutions and insightful recommendations help boards navigate the complexities of executive remuneration, which is often compounded with ever changing complex governance and compliance issues, increasing and conflicting scrutiny from shareholders, a disparate array of stakeholders, the media and regulators.

Our KMP remuneration services are comprehensive and range from partnering with clients to design remuneration strategies, review and design incentive plans (STI and LTI) and conduct bespoke market remuneration benchmarking research, to mention but a few.

Our consulting services, advice and recommendations aim to be clear, precise and transparent so that boards can manage these issues cost-effectively and strategically.

Keep ahead of regulatory and governance changes in executive remuneration

Recent regulatory changes have had a significant impact upon remuneration practices and governance in Australia, and remuneration issues are now a major focus of boards and shareholders alike.  Most notable of these changes are:

  • The introduction of the “Two Strikes” provision which means that any Australian ASX listed company that receives a negative vote of 25% or more on the Remuneration Report is deemed to have received a “strike”. Upon the occurrence of two consecutive strikes, a “spill motion” is now mandated that has the potential to radically change the leadership of the organisation.
  • The amendments to the Corporations Act making it an offence for external remuneration consultants (ERCs) to provide recommendations regarding the remuneration quantum or elements of KMP remuneration to any individuals other than a non-executive director of the company.
  • The 2009 changes to ESS (Employee Share Scheme) taxation laws, which have created a number of issues for short and long term incentives, as well as termination arrangements.

These are just a few examples of how regulations have been changing the remuneration landscape. GRG has always kept ahead of regulatory and governance issues and have developed innovative and efficient solutions to all remuneration matters.

Recent GRG Remuneration Insights on this topic

  • Rethinking Executive Remuneration

    Co-written with the KBA Consulting Group, this important Insight offers an in-depth overview of executive reward. In many vital respects, the current paradigm fails both shareholders and executives, as creating…

  • Retirement Savings – The Weak Element of Executive Remuneration

    For all employees and particularly executives, superannuation fails to meet retirement saving needs and no other element of remuneration focuses on this need. Retirement savings is the weak element of…

  • New Employee Share Scheme Taxing Provisions Released

    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…

  • Short Term Incentive Fundamentals

    The level of understanding of when an STI should be used and how its design features should be constructed seem not to be well understood by many stakeholders. Here we…

  • Major Changes to the Remuneration Landscape

    There are a number of significant changes occurring in the key management personnel (KMP) remuneration space that remuneration committee members, remuneration professionals and company secretaries should be aware of, as…