GuerdonNews® Volume 7 Number 4

May 2011


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.

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.

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.

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.

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.

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.

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


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