GuerdonNews® Volume 14 Number 7

August 2018

Dear reader,

 

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Welcome to the August 2018 issue of GuerdonNews®

 

 In this month's newsletter we:

• Welcome ACSI’s latest survey on ASX200 CEO pay

• Suggest simplification of draft new ASX Corporate Governance Principles and Recommendations. 

Indicate Treasury's likely regulatory response to the Hayne Royal Commission on remuneration and governance

Suggest alternative remuneration frameworks would be less skeptically received if performance was good

• Appreciate the nuanced simplicity of the new Mutual and Co-op Corporate Governance Principle on remuneration 

• Report a 2.3% increase in NZ NED fees

Point out that the new UK Corporate Governance code provisions, while shorter, are more prescriptive

• Describe outcomes from ASX100 board cultural diversity research

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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ACSI's annual pay review published; CEO pay has increased. Earnings too.

The data indicates the system is working pretty much as it should 

CEO pay has caught up to levels last recorded in 2007 – the last financial year before the GFC.

Read more

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New draft ASX Corporate Governance Principles need some work

They have more recommendations prescribing board focus. 

If there are no more changes recommendations will increase from 29 to 38, and the number of pages increases from 40 to 55. We, and others, have made some suggestions that permit boards do their job.

Read more

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Treasury's Hayne Royal Commission submission portends more remuneration regulation 

Boards take note.  

The Australian Federal Treasury has made its observations on banking and superannuation misconduct known in its submission to the Hayne Royal Commission on 13 July 2018. There are clear indications of the likely targets for regulation, including board "refreshment", and additional disclosure for middle management and salesforce remuneration.

Read more

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Alternative remuneration frameworks may not be received well by proxy advisers

Timing is everything. 

Proxy advisers and institutional investors, to their credit, have been fairly open to alternative executive remuneration frameworks these last two proxy seasons. That window of openness may close due to some dissatisfaction with how some companies have applied the frameworks.

Read more

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The new Mutual and Co-ops Corporate Governance Principle on executive remuneration

Short and meaningful.

Mutuals and co-ops may have their act together on governance principles that require boards to carefully consider rather than simply comply. Their principle on remuneration is worth a look.

Read more

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NZ Directors fees increase by 2.3%

Almost half of Kiwi directors not satisfied with pay. 

The NZ Institute of Directors (IoD) has released its 2018 IoD Directors Fees’ report. 

Read more

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The UK Governance Code is shorter than Australia's 

Which may be offset by some of the prescriptions it has for good governance

Could this be the future for Australian listed companies?

Read more

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The factors holding boards back from cultural diversity 

Putting an end to male and pale

(There is no evidence that this also means "stale".)

The University of Sydney’s Business School has published research into why there is so little cultural diversity among Australian boards. 

Read more

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Guerdon Associates "in the news"

“Shares help turn wage slaves into Rich Bosses”, James Thomson, Australian Financial Review, 9 July 2018

Read more

“Domino's CEO brings home $36.8m payday”, Patrick Durkin, Australian Financial Review, 17 July 2018

Read more

Latest GuerdonData® Updates

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

ARQ GROUP LIMITED, GUD HOLDINGS LIMITED, CREDIT CORP GROUP 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 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