Make sense of executive incentives with the GRG Variable Remuneration Guide

The alignment of executive performance and rewards is perhaps the most significant remuneration governance issue of our time. Knowing what the market landscape looks like is a critical first step towards reviewing your own at-risk reward and incentive practices in-context, or identifying common alternatives.

The GRG Variable Remuneration Guide offers comprehensive market data, analysis and insights into variable remuneration plan designs and approached used by ASX 200 listed companies in Australia, at both the high level, like how many companies have short vs long term plans, and down to the nitty gritty, like what happens on a change in control.

Why are variable remuneration plans so important?

The introduction of shareholder voting on Remuneration Reports at AGMs created the risk of a “strike” – 25% or more of the cast votes against adopting the Remuneration Report. The most common cause of such strikes is a failure of the variable structure, either in design or because outcomes don’t match the expectations of stakeholders. Beyond attraction, retention and motivation, there is more pressure than ever for variable remuneration plans to reward the right outcomes, in the right way, rather than just being a “bonus”.

GRG Variable Remuneration Guides cover both short- and long-term incentives

Long-term variable remuneration

  • The main choices in LTVR plans and who’s using them
  • LTVR award values at different market capitalisations over four major industry sectors
  • The impact of grant frequency on remuneration management
  • Valuing equity for remuneration purposes
  • Calculating the number of rights to be granted
  • Determining the LTVR vesting period
  • Implementing most appropriate LTVR performance metric for your company: TSR, Absolute TSR, Relative TSR, Share Price Growth and others
  • Weights and tranches, two inter-related aspects of LTVR design
  • Comparing performance goals and vesting scales for various metrics
  • The use of performance gates
  • LTVR options on takeover/change of control
  • Termination of employment
  • Restrictions on disposal of shares
  • Board discretion on vesting

Short-term variable remuneration

  • Determining the measurement period
  • STVR award opportunities
  • STVR payouts compared to target policy award opportunities
  • Key performance indicators
  • Determining appropriate performance goals for your KPIs
  • Weighting the relative importance of each KPI
  • The use of performance gates
  • Using modifier/multipliers to match awards to company performance
  • How STVRs can be affected by takeover/change of control
  • Configuring STVR plans for terminations of employment
  • Forms of STVR payment including deferral
  • The role of board discretion

Purchase your copy

Order a GRG Variable Remuneration Guide
$3,500 + GST

The publication is delivered in an electronic format to the nominated email. A licensed copy of the guide is for a company, and entitles circulation of copies amongst employees and directors of the purchasing company. Other users and external circulation requires the purchase of additional licences.

Please fill in the order form below. A digital copy of the guide will be emailed to your nominated email together with an invoice to be paid within 14 days.