44Remuneration Profile Review
Remuneration profiles reflect the proportions of remuneration that are expected to arise for different elements of remuneration at different levels of performance. These proportions may vary for different categories of employees. We canvass the main types of Remuneration Profiles and discuss when they may be relevant.
43TSR Assessment for LTI Purposes
Boards have great difficulty in selecting the approach to be applied to assessing TSR performance. It is important for the TSR assessment approach selected to be directly aligned with shareholder/investor expectations so that vesting can be calibrated to those expectations. In the Remuneration Report the vesting of LTI grants and company performance should be shown to be in alignment.
42PEPOs Unexpectedly Face FBT
The Australian Taxation Office ATO has recently released an interpretation of the taxing laws which accepts that such PEPOs have a no taxable value for ESS taxing purposes but maintains that they are not exempt from fringe benefits tax (FBT) and have an FBT taxable value for which companies are liable for FBT.
41CEO Remuneration Trends
We analyse median remuneration practice for CEOs of ASX listed companies with market capitalisations of between $25 million and $10 billion at the end of June 2011, and remark on any trends that can be observed on a whole of market basis.
40Linking Economic Profit and TSR Alpha
The ongoing debate about executive reward shows few signs of abating. This paper explores the possibility of achieving a meaningful consensus on the subject, where the interests of shareholders, non-executive directors and executives could be brought into alignment - around the shared belief that the primary economic objective of the Board and executive team of every listed company is to build an organisation that can create wealth for shareholders on an ongoing basis.
39Annual KMP Remuneration Review
It is around this time of year that most Australian Securities Exchange (ASX) listed companies review the market competitiveness of remuneration for key management personnel (KMP) who are broadly the non-executive directors (NEDs) and top executives. We discuss recent developments and approaches that may be taken to the review process. Due to regulatory changes it is now essential that reviews of KMP remuneration be clearly separated from reviews of remuneration for other employees.
38“First Strikes” Analysis of S&P/ASX300 Companies
As foreshadowed in GRG Remuneration Review 35 "Preliminary Observations on First Strikes", we have undertaken analysis of voting on Remuneration Reports for companies in the S&P/ASX300. Most companies with December 2011 year-ends have now had their AGMs, thus it was timely to undertake this analysis.
37Incentive Reporting Review, Two Strikes and TSR Alpha’s Advantages
Section 300A of the Corporations Act specifies the minimum disclosure requirements for Remuneration Reports of ASX listed companies in relation to key management personnel (KMP). However, these are seen as not sufficient by many and some companies have gone further, pre-empting proposed Corporations Act amendments...
36Strike Back On LTI Vesting Conditions
Over the next few months boards will, in the context of the "two strikes" shadow, be reviewing many aspects of key management personnel (KMP) remuneration. One area with which most companies seem not to be satisfied is the metrics used for vesting of LTI grants ...
35Preliminary Observations on First Strikes
The recent round of annual general meetings (AGMs) saw a number of companies receive their "first strikes" (25% or more negative votes on the Remuneration Reports...