GRG Remuneration Insights

Administrator

Retention Incentives and Sign-on Bonuses (Awards)

145

1 December 2022

When offered to executives, retention and sign-on awards can be viewed as controversial and even inappropriate. With the latest market data we explore the resultant stakeholder tensions and variations which may address their diverse priorities.

Administrator

Latest Market Insights into Incentive/Variable Remuneration Trends

144

8 November 2022

Each year GRG analyses the senior executive incentives practices of the ASX300 and publishes the results in the Variable Remuneration Guide to help clients determine whether a deeper strategic review may be needed. We highlight some of the key findings from the latest edition.

Administrator

Alert Update for Equity: Corporations Act Compliance

143

14 October 2022

New ESS provisions in the Corporations Act came into effect on 1 October 2022, with implications for almost all equity plans operated in Australia – and substantial problems.

Administrator

Alert: New On-sale Restriction for Shares Issued on Exercise of Rights etc.

142

4 August 2022

New employee share scheme (ESS) provisions in the Corporations Act come into effect for offers made on or after 1 October 2022, while Class Orders (COs) 14/1000 and 14/1001 will cease to apply to new offers. The COs provide various forms of relief from Corporations Act requirements.

Administrator

Off-the-Shelf vs Bespoke Benchmarking (Real Data Example)

141

19 July 2022

Do you need tailored remuneration advice this year, or just an update of market data and movements? Using real, current market data, we illustrate the differences between the approaches, and how you might decide which is best for your business at any given time.

Administrator

The Unlisted Equity Plan Revolution: Is Equity Right for You?

140

22 June 2022

Poor drafting of legislation intended to support widespread use of equity by unlisted companies instead prevented most from developing a compelling ESOP. Complete with a decision tree, this Insight will help you determine whether now is the right time to consider a new ESOP or even a replacement.

Administrator

Employee Share Scheme Corporations Act New Provisions (Division 1A of Part 7.12)

139

6 June 2022

From 30 September 2022, recent amendments to the Corporations Act will create a new regime governing Employee Share Schemes (ESSs) designed to remedy the impediments to both listed and unlisted companies trying to introduce an ESS. In this Insight we outline the new regime.

Administrator

Universal Long Term Incentive Grant Calculation Formula

138

26 April 2022

Flaws in many of the various calculations of equity instruments for LTI grants result in inappropriate numbers being granted. To address the issue, GRG has developed a universal formula for this calculation, applicable to LTIs and other purposes.

Administrator

Optimising ESOPs With Advanced Administration

137

16 February 2022

Common traps, missed opportunities and issues often make ESOPs seem harder and more expensive than they need to be, and undermine their impact. Fortunately, a range of simple, cost-effective solutions make ESOPs and equity-based remuneration the most attractive form of remuneration.

Administrator

4 Key Mistakes in Benchmarking to Avoid in 2022

136

31 January 2022

Benchmarking KMP remuneration may seem like a simple process, but it can quickly and easily go wrong. We set out four pitfalls to avoid when benchmarking in 2022, using the example of a fictitious online electronics retailer, Nogan Limited.

Administrator

Why Is STVR Deferral an Essential Ingredient in the Remuneration Mix?

135

29 October 2021

STVR typically rewards performance over a single year of the company's annual business plan. For many years it was paid entirely in cash, which promoted short-termism at the expense of the company's longer-term benefit. Here we look at future best practice, including how deferring STVR can support long term alignment, equity holding policy requirements, and “skin in the game”.

Administrator

A Small Change Will Have a Major Impact

134

3 August 2021

In the 2021 Federal Budget, it was announced that for ESS taxing purposes, termination of employment will not be a taxing trigger point for grants made on or after 1 July 2022. This small change will significantly affect the design of rights plans relating to LTVR, STVR deferral and retention programs.