Welcome to the November 2018 issue of GuerdonNews^®

 In this month's newsletter we:

• Summarise our submission to the Hayne Royal Commission.

• Consider incentive plan implications in a falling share market.

• Suggest methods to de-homogenise and tailor incentive plan design.

• Describe APRA’s BEAR implementation clarifications. 

• Review and benchmark the number of disclosed ASX 300 executive KMP. 

• Provide the dates for our next Governance and Remuneration Forum.

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

Hayne Royal Commission - profits quintessential, so rewards contingent on profit will remain in one form or another

Guerdon Associates' submission  

Adam Smith described the pursuit of profit as being the foundation of a market economy, and his explanation of “rational self-interest” helps one in understanding that profit will always drive employee behaviour, with or without incentives. 

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Executive incentives in a falling market

What to expect, and what to do, as equity markets correct

Guerdon Associates explores the effect on TSR gateways, returns relative to WACC, asset disposals, and incentive targets. We provide a checklist of alternatives. 

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Compensation designs that buck tradition

If your company is different, so should be the way it pays people 

If companies can show investors how the incentive plan links to its strategy, culture and shareholder value, it is more likely they will support a non-traditional compensation design. 

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Implementing BEAR – APRA’s guidance 

APRA suggests banks re in the best place to judge for themselves 

Issues arose surrounding the identification and notification of accountable persons and the mandatory deferral of a proportion of variable remuneration over a period of four years.

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Benchmarking disclosed ASX 300 executive KMP 

Guerdon Associates investigates how the number of executive KMP varies with company size

Our finding reinforces the notion that the number of identified executive KMP in a company is a result of its governance structure, not its size according to financial metrics.

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Remuneration and governance post Hayne - save the date

The afternoon of 7 March in Melbourne, and morning of 11 March in Perth. 

Join us for a discussion on the impact of the Hayne Royal Commission. Can you regulate and pay for morality and culture?

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Remuneration and governance - be the best

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. Be the best - a principal, consultant or analyst with Guerdon Associates.

Contact us at careers@www.guerdonassociates.com.

Latest GuerdonData^® Updates

Updates to GuerdonData^®  this month include disclosures from the following 16 companies: 

THE A2 MILK COMPANY , AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED, BANK OF QUEENSLAND LIMITED, CLINUVEL PHARMACEUTICALS LIMITED, FORTESCUE METALS GROUP LTD, FORTESCUE METALS GROUP LTD, JUPITER MINES LIMITED, KOGAN.COM LTD, OM HOLDINGS LIMITED, ORICA LIMITED, PREMIER INVESTMENTS LIMITED, PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED, REA GROUP LTD, SUNDANCE ENERGY AUSTRALIA LIMITED, SOUL PATTINSON (W.H), TPG TELECOM 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.