GuerdonNews® Volume 14 Number 4

May 2018

Dear reader,

 

---

Welcome to the May 2018 issue of GuerdonNews®

 

 In this month's newsletter we:

• Expect more variability in executive incentive outcomes, as prompted by a regulator. 

• Compare Australia's executive pay and governance standards with other countries' standards. 

• Discuss new draft governance standards' implications for board and director evaluations. 

• Provide a remuneration committee checklist based on APRA's CBA report. 

• Summarise proposed ASX Corporate Governance Council Principles and Recommendations changes and issues.  

• Note that the private health insurance industry will be held to a higher governance and remuneration standard. 

• Summarise the Financial Stability Board's new toolkit to mitigate misconduct risk. 

---

Regulator says make executives accountable and vary their pay

A stark message for all remuneration committees.  

Regulatory developments are consistent with some institutional investor's requirements. They present an opportunity for board remuneration committees to reconsider current frameworks, providing they have the fortitude to let it be known that not all their executives perform "above average".

Read more

---

How does Australia rate on executive pay and governance? 

Our review of global executive pay governance compares Australia's governance standards to those of 19 other countries. 

Read more

---

Boards to test their own competence annually

Monitor or be monitored.  

New changes to governance standards have put the focus squarely on directors' skills and competence. This coincides with investors' resolve to vote more frequently against the re-election of some directors.

Read more

---

APRA's CBA review provides a remuneration committee checklist

A checklist applicable to remuneration committees from all industries. 

APRA's observations and recommendations have implications for all ASX listed companies, as the practices of Australia’s banks have tended to permeate through to all other companies over time. 

Read more

---

New ASX Corporate Governance Principles and Recommendations released for consultation

Our thoughts. 

The ASX Corporate Governance Council has released the proposed 4th version of its corporate governance principles and recommendations. 

Read more

---

Higher remuneration standard now required for insurers

This sets a high bar. 

Private health insurers have been added to the cross-industry standard CPS 510 Governance. 

Read more

---

Timing is everything: a toolkit to mitigate misconduct risk

Prevention better than fines. 

The Financial Stability Board has drawn on the experience and perspectives of its members to build a toolkit of "options" for companies to use to mitigate misconduct risk.  

Read more

---

Latest GuerdonData® Updates

Updates to GuerdonData®  this month include disclosures from the following 11 companies: 

ALTURA MINING LTD, BRAVURA SOLUTION LTD, EMECO HOLDINGS, GLOBAL GEOSCIENCE, INTEGRATED RESEARCH, KIDMAN RESOURCES LTD , LOVISA HOLDINGS LTD, MELBOURNE IT LTD, NEW CENTURY RESOURCE, NRW HOLDINGS LTD, PRO MEDICUS LTD 

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.

---

SUBSCRIPTION INFORMATION

This email was sent to: subscriber
To manage your membership details including subscriptions click Edit your subscription
If you would like to unsubscribe from this email newsletter please click Click here to unsubscribe

TELL A FRIEND
Forward this email onto a friend here

FEEDBACK
Your comments and questions are welcome. Send them to info@guerdonassociates.com

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