GuerdonNews® Volume 14 Number 9

October 2018

Dear reader,

 

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Welcome to the October 2018 issue of GuerdonNews®

 

 In this month's newsletter we:

• Consider the Hayne Banking Royal Commission's assessment of remuneration matters.

• Summarise new proxy adviser guidelines re alternative remuneration frameworks.

• Note that the expected Federal Opposition's CEO-worker pay ratio disclosure policy has been announced.

• Describe how ASX-listed technology companies could have a natural advantage in the war for talent. 

• Note that California's female board director quotas could apply to some ASX-listed companies

• Report on ASIC's "culture" priority in its new corporate plan

• Take delight that federal government agencies may be held to the same disclosure standards now imposed on listed companies. 

We conclude by  executive and director remuneration disclosure updates available on the GuerdonData® on-line database.

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The Hayne Banking Royal Commission report questions use of profit as a basis for incentives

Suggests concerns for short term profit overcame need to adequately service customers.  

The Royal Commission’s interim report says that a key driver of behaviour is remuneration contingent on profit and sales. 

Read more

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2018 Changes to CGI Glass Lewis and ISS voting guidelines

What they mean for alternative remuneration frameworks.

CGI Glass Lewis and ISS have released their proxy guidelines for the 2018 voting season. It is usual for these firms to publish changed guidelines on which companies are judged only after the companies have published their disclosures.

Guerdon Associates summarises the main changes. 

Read more

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Labor to introduce a CEO-worker pay ratio

Intentions seem closer to the US model. 

As expected, Labor has pledged a CEO-worker pay ratio if it wins at the next election, which it says will help inform investors to calculate risk and decide where to invest their money. 

Read more

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ASX-listed technology companies could be well positioned in talent war

Pending investor and proxy adviser support.  

In the talent war, the main challenge for an ASX-listed technology company may not be attracting and retaining technical talent, but in configuring a board of independent directors with the skills and knowledge to navigate through external stakeholder guidelines to leverage of the listed company's natural advantages.

Read more

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California mandates companies have at least one woman on their board

These quotas will apply to ASX listed companies headquartered in the world’s 5th largest economy.

The US state of California has legislated to mandate the inclusion of women on boards of publicly held companies headquartered in the state.

Read more

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"Culture" takes priority in ASIC four-year plan

Regulator admits culture can not be solely influenced from the top. 

This is a notable change in tone.

ASIC has identified five key long-term challenges to ASIC’s vision. 

Read more

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Report recommends remuneration transparency for Commonwealth entities

Plus a boost to Audit Committee pay. 

An independent review into the Public Governance, Accountability Act 2013 has recommended legislation be introduced mandating that Commonwealth entities disclose KMP remuneration on an individual basis. 

Read more

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Remuneration and governance - know anyone brilliant who is not already with us?

Guerdon Associates services are in ever higher demand. 

To meet the demand we need more people. But not ordinary people. We need people technically adept, capable of innovation, and who can work as part of a great team to properly analyse, identify and consider our clients’ issues, develop alternative solutions with a critical mindset to identify pros and cons, work with them to prioritise action, and assist on Implementation. We have vacancies at all levels - principals, consultants and analysts.

Contact us at careers@guerdonassociates.com.

 

Latest GuerdonData® Updates

Updates to GuerdonData®  this month include disclosures from the following 175 companies: 

ALTURA MINING LIMITED, AMCOR LIMITED, AURELIA METALS LIMITED, AUTOMOTIVE HOLDINGS GROUP LIMITED, BENDIGO BANK LIMITED, BHP BILLITON LIMITED, BORAL LIMITED, BRICKWORKS LIMITED, COMPUTERSHARE LIMITED, CROWN LIMITED, DACIAN GOLD LTD , FLEXIGROUP LIMITED, GLOBAL GEOSCIENCE LIMITED, HARVEY NORMAN HOLDINGS LIMITED, IVE GROUP LIMITED, KAROON GAS AUSTRALIA LIMITED, KIDMAN RESOURCES LIMITED, LIQUEFIED NATURAL GAS LIMITED, LYNAS CORPORATION LIMITED, MACA LIMITED, MAGNIS RESOURCES LIMITED, MEGAPORT LIMITED, MONEY3 CORPORATION LIMITED, MYER HOLDINGS LIMITED, NEARMAP LTD, NEW CENTURY RESOURCES LIMITED, NUFARM LIMITED, ORORA LIMITED, POLYNOVO LIMITED, PRAEMIUM LIMITED, PRIMARY HEALTH CARE LIMITED, RAMSAY HEALTH CARE LIMITED, RIDLEY CORPORATION LIMITED, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP, SILVER CHEF LIMITED, SKY NETWORK TELEVISION LIMITED, SKYCITY ENTERTAINMENT GROUP LIMITED NZX, SONIC HEALTHCARE LIMITED, SOUTH32 LIMITED, VILLAGE ROADSHOW LIMITED, WAGNERS HOLDING COMPANY LIMITED, WESFARMERS LIMITED, WISETECH GLOBAL 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