GuerdonNews® Volume 14 Number 3

April 2018

Dear reader,

 

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Welcome to the April 2018 issue of GuerdonNews®

 

 In this month's newsletter we:

• Discuss APRA's conclusion that bank executives pay did not reflect their individual accountability for risk, and failed to reflect poor risk outcomes.  

• Provide a code of conduct and whistleblower board checklist. 

• Summarise key points from last month's Remuneration and Governance Forum. 

• Consider market practice and wonder why more companies do not have loan-backed share plans. 

• Note that Treasury has provided a full 14 days (or 9 by the time you get this) to comment on how they will determine if you are a big, medium or small bank for BEAR remuneration compliance. 

• Relate AMP Capital's bug bears explaining how they lodged votes for the most recent AGM season.  

• Remind Australian companies listed on LSE's AIM that they face new corporate governance disclosure requirements.  

 

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APRA reviews bank, insurer and superannuation remuneration

And found it wanting.    

In a nutshell, APRA found that bank executives pay outcomes did not reflect their individual accountability for risk, and that poor risk outcomes were not reflected in executive variable pay.

Read more

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ACSI critical of ASX 200 codes of conduct and whistleblowing

A checklist to meet likely incorporation into ASX Corporate Governance Council Guidelines. 

The Australian Council of Superannuation Investors' report into ASX 200 companies' whistleblowing policies and codes of conduct has found that not all companies' codes of conduct are equal and most are decidedly lacking. 

Read more

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2018 Remuneration and Governance Forum

Agreement, except for the incentives bit...

We provide a summary of key points raised in last month's Remuneration and Governance Forum.  

Read more

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Loan backed share plans not common

The question is why.  

Despite a few disadvantages, loan backed plans are tax effective and align employees with shareholder interests. 

Read more

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BEAR - More legislation on the way

Another very brief consultation period. 

The Australian Treasury has released a draft legislative instrument to support the new Banking Executive Accountability Regime (BEAR).

Read more

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AMP Capital's Review of the 2017 Voting Season

A step up in activism. 

AMP Capital has released its 2017 voting review, reporting voting statistics for the recent AGM season and considerations in voting no.

Read more

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Corporate governance requirements for AIM companies   

50 Australian companies will be impacted.   

AIM was an exchange listing remitting smaller companies ot access capital markets without onerous governance compliance requirements. No longer! By 28th September 2018, all AIM companies must disclose on a comply or explain basis according to a corporate governance code.

Read more

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Latest GuerdonData® Updates

Updates to GuerdonData®  this month include disclosures from the following 10 companies: 

WPP AUNZ LTD, ADELAIDE BRIGHTON LIMITED, AMP LIMITED, FAR LIMITED, SIGMA COMPANY LIMITED, GALAXY RESOURCES LIMITED, SYRAH RESOURCES LIMITED, 
ALUMINA LIMITED, SINO GAS & ENERGY HOLDINGS LIMITED, SPEEDCAST INTERNATIONAL 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, 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 © 2018 Guerdon Associates

ISSN 1834-8300