GuerdonNews® Volume 7 Number 2

March 2011


Welcome to the March 2011 issue of GuerdonNews®

In this issue we:

• Provide a remuneration committee checklist to deal with new executive remuneration laws

• Describe how the new Bill on executive remuneration has more holes than Swiss cheese, with the potential for high compliance costs

• Summarise the real effect the 2-strikes process as designed will have on remuneration voting

• Provide the 21 March 2011 Remuneration Forum program

• Have a checklist to assist boards engaged in an IPO process for establishing an appropriate pay structure

• Note the Australian government proposes an extension of the fringe benefits tax exemption for offshore “fly-in fly-outs”

We conclude with the latest on executive and director remuneration disclosure updates available on the GuerdonData® on-line database and references to Guerdon Associates in the news media.

Board remuneration committee and board checklist to deal with new executive remuneration laws

The Corporations Amendment Bill 2011 was only introduced into federal parliament on 23 February 2011.

We suggest the actions boards may have to undertake.

Law firms to do well from new Australian law on remuneration consultants

And the accountants do ok too

Despite the administrative load and compliance costs that the new Bill on executive remuneration will impose on listed company boards, part of us has a new found admiration for the lobbying powers of certain advisory firms, and the legal profession in general.

2-strikes and out!

The government’s ‘strengthening’ of the current non-binding vote on the remuneration report by moving to the ‘two strikes and a spill resolution’ is almost complete.

The Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011 was introduced to the House of Representatives on 23 February 2011.

Remuneration Forum program

The annual morning Remuneration Forum for investors, directors and executives on the 21 March has published its program.

Pre and post IPO executive pay – a board checklist

Australia’s IPO market is heating up, and not only in the resources sector. Often overlooked are executive pay frameworks.

We have developed a checklist that may assist boards engaged in an IPO process in establishing an appropriate pay structure.

Australian government proposes extension of FBT exemption in pay of offshore “fly-in fly-outs”

On 28 February 2011, the Treasury has released for public consultation an exposure draft of legislation that will extend the fringe benefits tax exemption for Australian residents working in remote locations on a fly-in fly-out basis to Australian residents working in similar remote locations overseas.

Miss last month's newsletter?

Apparently some subscribers did

Pity, because it had some interesting articles.

Click below if you want to see it.

Latest GuerdonData® Updates

Updates to GuerdonData® include disclosures from the following 2 companies:

Pan Australian Resources Limited, Woodside Petroleum 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

“Caltex Australia Limited; 2010 Preliminary Final Report and 2010 Financial Report”, ASX ComNews, 21 Febuary 2011.

"Executive pay is on the money", Andrew Headthcote, BRW, 10 February 2011, Page 24.

"The outlook for Australian director and executive pay in 2011", Guerdon Associates, Business Spectator, 23 February 2011


The information, analysis and opinion in this e-mail and attachments are intended to be for informational purposes only. Analyses are based on information taken from public documents or private surveys, and we do not represent to its accuracy. Guerdon Associates assumes no liability for the use or interpretation of information contained herein. This publication is provided 'as is' without warranty of any kind, either expressed or implied, including, but not limited to, the implied warranties of marketability, fitness for a particular purpose, or non-infringement of third party rights.

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  Copyright © 2011 Guerdon Associates

ISSN 1834-8300