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”.