GRG Remuneration Insights

Option Valuation Models Simplified

172

28 February 2025

Understanding option valuation models is necessary to make optimal decisions for equity design. They will apply to SARs and SPLPs and will also help determine the accounting cost of equity. But they need not be complex.

Proxy Advisor Executive Remuneration Spotlight

171

28 February 2025

Institutional investors and proxy advisors have been spotlighting a number of executive remuneration issues where ASX listed company boards may risk a “strike" if their remuneration practices don't meet expectations.

Linking ESG to Remuneration – Part II

170

23 January 2025

How should the criteria for ESG – one of the hottest topics for ASX listed companies – be linked to executive remuneration? We examine ESG market prevalence and practice in Australia and offer some general guidance.

Are the days of premium pay for technology sector executives over in Australia?

169

15 November 2024

If you suspect the days of premium pay for Australian technology sector executives are over, it really depends on how you measure and analyse it. GRG's ERS provides a fast, accurate way to do this.

Changing Use of Indeterminate Rights

168

31 October 2024

Whether to use determinate or indeterminate rights in long term variable remuneration (LTVR) plans for senior executives remains a challenge for many boards. Indeterminate rights are far more flexible and have wider application, yet market practice is divided.

2024 Trends in Variable Pay

167

9 September 2024

Incentives or Variable Remuneration (VR) market practices are evolving rapidly due to shifting stakeholder expectations and legislative changes. Using the ASX300 market data in GRG's 2024 Variable Remuneration Guide, we analyse the latest trends and answer common VR questions.

Succession ESOPs

166

25 June 2024

How do retiring owners of private companies enable the company to continue growing, while realising the value of their shareholding without a ready market for the shares? A Succession Employee Share Ownership Plan (SESOP) allows key employees to buy into the company, motivating them to grow its value even as the founder sells down.

Equity Bank

165

25 June 2024

As well as increasing long-term alignment of executives, Equity Banks are useful to the executives themselves, shareholders and governance groups – for both listed and unlisted companies.

Linking ESG to Remuneration

164

14 May 2024

How should the criteria for ESG – one of the hottest topics for ASX listed companies – be linked to executive remuneration? We observe emerging market practices in Australia and provide an ESG or risk scorecard example.

ESG Remuneration Considerations

163

14 May 2024

Many boards are struggling to introduce Environmental, Social and Governance (ESG) metrics into incentive remuneration plans. We discuss key ESG considerations to answer questions such as which ESG metrics should be focused on, how they are measured, and what weighting should be applied to each metric.

Why Your Company Should Regularly Participate in Executive Remuneration Surveys

162

24 April 2024

We delve into how regular participation in remuneration surveys helps businesses align executive pay with market standards, ensure regulatory compliance, and make strategic compensation decisions – highlighting how this fosters competitive and equitable pay structures crucial for navigating the corporate landscape effectively.

How Executive Remuneration Surveys Support Pay Alignment

161

18 April 2024

We explore how executive remuneration surveys facilitate pay alignment by providing data-driven benchmarks for executive compensation, enhancing transparency, ensuring regulatory compliance and addressing inherent data challenges to create competitive, tailored compensation strategies in the corporate landscape.

Long Term Incentive Fundamentals

160

16 April 2024

LTIs have a poor reputation as overly complex, legalistic, opaque and challenging, with unintuitive performance metrics. But LTI/LTVR can, and should be, the most powerful, effective element of remuneration. So what are the fundamentals of LTI plans and their critical success and failure factors?

Unlisted Long Term Incentives: Equity Optional

159

16 April 2024

Substantial regulatory changes and innovative solutions have recently made compelling LTVR/LTI structures possible for unlisted companies. We analyse the four main approaches we observe in successful unlisted market examples (and the main alternative).

WGEA Vs GREAT: Actionable Gender Pay Insights

158

22 March 2024

In February, damning WGEA findings laid bare the problematic and oversimplified collection, analysis and reporting of gender pay gap data. This can be remedied for genuine insights and effective action plans to impel true gender equality in remuneration. GRG offers practical support for this long overdue outcome.

The Rise of Service Vesting Equity

157

19 February 2024

SVEs represent an attractive simple element of remuneration for executives that can be introduced for no additional cost.  They can also help address deficiencies with STVR and LTVR that are problems for some companies.