Welcome to the May 2011 issue of GuerdonNews® |
In this issue we: |
In this issue we:
• Provide a checklist for Remuneration Committee evaluation criteria
• Summarise recent research findings that found a positive relationship between non-executive directors holding shares and company performance
• Notice that the Dodd-Frank Wall Street Reform and Consumer Protection Act expands SEC foreign reach
• Summarise recent findings for the causes of Global Financial Crisis.
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. |
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Remuneration Committee evaluation criteria-a checklist |
The temptation for most remuneration committees is to revert to tried and tested, boilerplate remuneration solutions. |
But with the 2 strikes law, this may not necessarily reflect a committee committed to excellence. We provide a checklist. |
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Research suggests companies perform better when NEDs own shares, and are less than “independent” |
Recent research indicates that: |
· There is a positive relationship between non-executive directors holding shares and company performance
· The effectiveness of board monitoring improves as board size and the proportion of outside directors reduces
· Greater skin in the game by executive board members also improves company performance over most, but not all, ownership ranges. |
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Crossing borders - Dodd-Frank law expands SEC foreign reach |
As most business leaders know, the United States enacted a comprehensive financial regulatory scheme last year in response to the recent financial meltdown. |
The law, known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), has several provisions related to the ability of the U.S. government to prosecute fraud occurring outside the U.S. and the ability of whistleblowers to report that fraud. |
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Recent findings for the causes of the GFC |
The US Senate Permanent Subcommittee on Investigations (PSI) has released its final report on its investigation into the causes of the global financial crisis. |
You might think this would be dull and boring, but it provides a fascinating insight into the real causes of the global melt-down, based on previously unavailable internal documents. |
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Latest GuerdonData® Updates |
Updates to GuerdonData® include disclosures from the following 13 companies: |
Australian Agricultural Company Limited, Adelaide Brighton Limited, Austar United Communications Limited, Boart Longyear Limited , Intrepid Mines Limited, Iluka Resources Limited, Invocare Limited, Minara Resources Limited, OM Holdings Limited, Oz Minerals Limited, Roc Oil Company Limited, Spark Infrastructure Group , Tap Oil 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. |
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Guerdon Associates in the news |
“Unwelcome package”, Tony Featherstone, Company Director, Volume 27, Issue 03, April 2011, pp. 16-22
“Experts question exec pay reform”, Patrick Durkin, Australian Financial Review, 20 April 2011, p. 13 |
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