GuerdonNews® Volume 14 Number 5

June 2018

Dear reader,

 

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Welcome to the June 2018 issue of GuerdonNews®

 

 In this month's newsletter we:

• Set the record straight on the one example of banking "clawback" everyone's been talking about

• Welcome the arrival of Australia's first stewardship code for owners

• Confirm that directors' superannuation is no longer punitively taxed

• Suggest that clawback policies will be more frequent but very limited

• Report changes to ISS' QualityScore methodology that rates governance in proxy advice

• Note that APRA  requires improved superannuation fund board composition and skills

• Summarise the FSB's remuneration data collection wishlist it wants regulators to impose on banks and insurers

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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An oft cited case of banker remuneration clawback in action probably isn't

The world is still waiting for a test case to prove it is feasible. 

The UK's Financial Conduct Authority and Prudential Regulation Authority recently levied fines on Barclays CEO for attempting to unmask a whistleblower. But was Barclays' response to the same incident really clawback?

Read more

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At long last - a stewardship code for Australian asset owners

Code should assist all ASX 200 issuers with engagement.  

The Australian Council of Superannuation Investors has launched Australia's first stewardship code for asset owners. 

Read more

 

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Will the most recent FSB review give impetus to mandatory clawback?

Would it be terrible if it did? 

The Financial Stability Board has announced a review into whether Australia and other countries have appropriately resolved sources of bad bank and insurer behaviour. 

Read more

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ISS QualityScore methodology updates for Australian companies

Don't panic. 

Institutional Shareholder Services Inc. (ISS) announced the release of QualityScore methodology updates for Australian companies on 22 May 2018.

Read more

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Board effectiveness and skills the focus for super funds too

Review pinpoints composition and performance assessment as needing improvement. 

All Registered Superannuation Licensees are expected to review their existing governance arrangements and address any areas found wanting. 

Read more

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More form filling for banks regarding remuneration - the FSB wants input

Banks have Buckleys responding, given all the reviews requiring action. 

The Financial Stability Board is consulting on a standard set of data that could be reported by companies around the globe to national supervisory authorities (i.e. APRA and ASIC here in Australia).

Read more

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Guerdon Associates "in the news"

“Grange Resources takes short approach to long-term incentives”, Peter Ker, Australian Financial Review, 29 May 2018

Read more

“Bonuses for chief risk officers, in-house counsel face scrutiny”, Misa Han, Australian Financial Review, 17 May 2018 

Read more

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Latest GuerdonData® Updates

Updates to GuerdonData®  this month include disclosures from the following 9 companies: 

CSR LIMITED, FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED, JAMES HARDIE INDUSTRIES, MACQUARIE GROUP, OZFOREX GROUP LIMITED, THORN GROUP LIMITED, XERO LIMITED, ALS LTD, PENDAL GROUP 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 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