14Changes to Terminations Benefits
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...
13Aggregate Feel Limit (NEDs) Trends
It has been four years since we last undertook a detailed analysis of shareholder voting patterns in relation to resolutions seeking shareholder approval of increases in aggregate fees limits (AFLs) which are the caps that apply to fees that may be paid by companies to their non-executive directors (NEDs)...
12Review of STI practices
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 ...
11LTIs and Discounted Rights Issues
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...
10Executive Pay in a Downturn
At the time of writing this article there has been considerable comment and reaction in relation to what has been perceived as the possible role of executive remuneration in contributing to the current global financial crisis ...
9LTIs and Changes in control, capital reorganisation
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 ...
8ASX Response to Options for NEDs
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)...
7LTIs vs STIs and Accounting Charges
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 ...
6Why Options Should be Provided to NEDs
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 ...
5Accounting for and Calculating LTIs
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 ...