Welcome to Guerdon Associates’ September 2007 newsletter.
We start off this month’s newsletter with a closer look at the ATO’s audit of executive taxes that may be owing on vested equity, delve into the specifics of the ASX Corporate Governance Council’s revised principles’ implications for remuneration, point out how another government “initiative” to cut red tape results in higher share plan taxes, summarise further research on share option effectiveness, and remind you that our Sydney office will be closed this Friday due to the APEC world leaders’ meeting.
We conclude with the latest executive and director remuneration disclosure updates available on the GuerdonData® on line database, as well as the month's news media featuring Guerdon Associates.
Australian Taxation Office taking a close interest in executive remuneration arrangements
The Australian Commissioner of Taxation confirmed that the ATO is reviewing the tax affairs of high-income individuals with remuneration in excess of $1 million.
The focus of the review includes incentive arrangements involving shares, options and rights, cash bonuses and non-income capital benefits.
ASX Corporate Governance Council Revised Principles – More Specifics On Executive Pay and Performance
In August’s newsletter we provided a summary of the revised ASX Corporate Governance Council revised principles.
This month we highlight specific revisions as they impact reporting and practices for executive remuneration and performance management.
Higher taxes on share and option termination payments
One outcome most pundits can bet on is that if there is an excuse to raise taxes under the guise of “it will be good for you”, then it will be done.
The changes noted in this article are part of the process of aligning the Victorian and New South Wales payroll tax arrangements to reduce red tape for business.
Executive Share Options May Not Be Enough For Some Companies
Boards and remuneration committees typically issue executive options and their closely related cousins, performance rights or share acquisition rights, as the vehicle of choice for their long-term incentive plans.
While the use of equity compensation is generally accepted as being desirable to motivate executives to add value for shareholders, what else it does is not always well understood.
Sydney “holiday”- world leaders on our doorstep
Please note that our Sydney office will be closed due to the stringent security requirements for the APEC meeting this Friday, 7 September.
The NSW government has also declared this day to be a public holiday for all employees in the Sydney central business district.
Our Melbourne office will be open as usual, and can be contacted on 03 8319 4005.
Latest GuerdonData® Updates
This month’s updates to GuerdonData® include disclosures from the following thirteen companies:
UNITED GROUP LIMITED, ALESCO CORPORATION LIMITED, ASX LIMITED, CITY PACIFIC LIMITED, PERPETUAL LIMITED, SYMBION HEALTH LIMITED, TRANSFIELD SERVICES LIMITED, WORLEY PARSONS LIMITED, HASTIE GROUP LIMITED, BIOTA HOLDINGS LIMITED, COMMONWEALTH BANK OF AUSTRALIA, SOUTHERN CROSS BROADCASTING (AUSTRALIA) LIMITED, KEYCORP LIMITED
Executive and director remuneration data from all ASX 300 companies on GuerdonData® is available to any subscriber. Visit our website for more information on GuerdonData®.
Assess how easily you can find out director and executive pay information by viewing our 6 minute demo. Click on the “More Info” button below.
Guerdon Associates In The News
“Remuneration trends”, CFO Australia, 10 August 2007, p. 11