GuerdonNews® Volume 13 Number 11

December 2017

Dear reader,

 

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Seasons Greetings and welcome to the December 2017 issue of GuerdonNews®

 

In our final bumper reading issue for 2017, we:

• Examine whether retail superannuation trustee boards are paid more than industry funds pay their trustee boards. 

• Explore changes in the Australian Council of Superannuation Investors'  newly released voting guidelines.

• Announce the date for the 12th Remuneration and Governance Forum - 7 March in Sydney, and 13 March in Perth. Last year the Forum was booked out. 

• Provide an update on proxy adviser regulation following our October Director Briefing with ASIC.

• Disclose the findings of the Senate Economics Legislation Committee on the BEAR legislation prescribing bank executive pay currently before federal parliament. 

• Alternately rejoice and despair on the Workplace Gender Equality Agency's latest release of gender equity pay data.

• Consider the draft terms of reference for the banking Royal Commission.

• Reveal an existing code of conduct already in place for proxy advisers. 

 

We look forward to reporting board governance and executive remuneration news to you again in 2018, with our first monthly issue to be delivered on the second Tuesday in February. In the interim we will, as usual, be toiling away the summer for our clients throughout January.

It has been another great year for Guerdon Associates. Thank you to our clients, and their investors, for being open and responsive to reward solutions that focus executives on creating value, and board governance processes to optimise risk and return. From all of us in Guerdon Associates, best wishes for a safe, happy and prosperous New Year.

Should retail super board members be worried about the level of director fees?

Do not be misled by recently published "analyses".  

A media report suggested banks pay their retail superannuation directors more than industry funds pay their directors. There is another view.

Read more

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ACSI issues updated voting guidelines

Watch out for remuneration considerations that include complexity and relativity.  

The newly released eigth edition streamlines existing principles and further refines guidance on the factors considered when determining executive pay and other voting recommendations. 

Read more

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The acceptability of alternative remuneration that is fit for purpose: save this date 

The afternoon of 7 March in Sydney, and morning of 13 March in Perth.

Alternative remuneration frameworks will be one of two areas of focus at our 12th Remuneration and Governance Forum, co-sponsored by Guerdon Associates and CGI Glass Lewis.

Read more

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Proxy adviser regulation: where to from here? 

 US moves on regulation. 

However, there are concerns in Australia that regulation could lead to lower quality reports, fewer or more conflicted proxy advisers and less engagement. 

Read more

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What is the BEAR up to? 

Senate Committee recommends the government slows the pace. 

The Senate Economics Legislation Committee has released its report on the BEAR legislation prescribing bank executive pay that is currently before federal parliament. 

Read more

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Women leadership equity undergoing continuous improvement except, apparently, in the board room 

Three years of scant progress. 

New data on gender equality progress shows companies are making use of WGEA data for benchmarking purposes and are ramping up their pipeline of managerial women, but these efforts are not yet bearing more fruit at in the boardroom. 

Read more

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Banking remuneration under the microscope again 

Link between remuneration and culture an area ripe for analysis.  

Despite numerous other enquiries, and the BEAR legislation, a Royal Commission into the banking sector is going ahead. Culture and remuneration will be one of the areas it will canvass. 

Read more

 

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A proxy adviser code of conduct already exists

And its principles appear sound. 

Issuers and their directors who have been particularly concerned with the quality of proxy adviser research may want to review the code of conduct that already has proxy advisers signed up. It even has a compliance mechanism (but not, alas, if you are an issuer).  

Read more

 

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Latest GuerdonData® Updates

Updates to GuerdonData®  this month include disclosures from the following 12 companies: 

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED, BT INVESTMENT MANAGEMENT LIMITED, DULUXGROUP LIMITED, ECLIPX GROUP LIMITED, ELDERS LIMITED , GRAINCORP LIMITED , INCITEC PIVOT LIMITED, NATIONAL AUSTRALIA BANK LIMITED, ORICA LIMITED, SOUL PATTINSON (W.H), WEBSTER LIMITED, WESTPAC BANKING CORPORATION

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, for more information click HERE.

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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.

Copyright © 2017 Guerdon Associates

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