GuerdonNews® Volume 15 Number 3

April 2019

Dear reader,

 

Welcome to the April 2019 issue of GuerdonNews®

 

 In this newsletter we:

• Consider research to determine if malus actually works

• Describe the 3 changes to remuneration that APRA wants to achieve with its next regulation

• Summarise debate from our Remuneration and Governance Forum with investors and issuers

• Describe the assessments made in the re-visit to the Retail Banking Remuneration Review

• Present the Government's proposals to make Employee Share Schemes more attractive

• Report on AMP Capital's voting policies, stewardship record, and statistics

• Note State Street's voting guidelines on sustainability issues

We conclude with executive and director remuneration disclosure updates available on the GuerdonData® on-line database and references to Guerdon Associates in the news media.

Does malus work?

Research by the Bank of England explores various incentive structures for risk taking and effort 

Malus works. Incentive caps do not.

Read more

APRA Chairman indicates a (probable) course of action 

Wayne Byres asks if directors have a glaring blind spot – themselves

APRA indicates a revised prudential standard that incorporates less TSR, more board discretion, longer pay deferral periods, and clawback. 

Read more

Remuneration and Governance Forum 2019 outcomes

Discussions and findings from the last AGM season on pay, director elections, and activism  

The forum saw healthy debate and informative panels. A range of topics included an autopsy of the 4 big banks’ remuneration proposals, an update on activist shareholder proposals and global trends in remuneration structures.

Read more

Retail banking remuneration progress has been made 

Mr Stephen Sedgwick AO publishes an interim report on the progress to-date

Risky elements of pay are gone among front-line staff remuneration. Banks are addressing their need for cultural change but this will take time. The standard commission model remains. 

Read more

Treasury seeks feedback on Employee Share Schemes

The government aims to make ESS more attractive and user-friendly for smaller business

Some of the proposals include increasing the offer cap, simplifying exemptions and ASIC relief, contribution plans and disclosure documents. 

Read more

AMP Capital’s review of the 2018 proxy voting season

The company reports its voting statistics and highlights issues

Details emerge of its voting patterns on director resolutions, remuneration reports, incentive grants, NED fees and termination payments.

Read more

State Street’s 2019 ESG guidelines 

The giant asset manager provides an insight into how it votes on sustainability issues

All indications point to SSGA pushing companies to reach an acceptable standard with regards to sustainability. This is consistent with a trend by other institutional investors.

Read more

Guerdon Associates in the News 

“Directors torn over APRA's pay plan”, P Durkin and J Shapiro, Australian Financial Review, 29 March 2019

“How much are you really worth?”, Rachel Alembakis, Ben Hurley and Susan Muldowney, Chartered Accountants Australia and New Zealand’s Acuity Magazine, April/May 2019 issue

Latest GuerdonData® Updates

Updates to GuerdonData®  this month include disclosures from the following 21 companies: 

Adelaide Brighton Limited, Amp Limited, ARQ Group Ltd, Austbrokers Holdings Limited, Alumina Limited, Carnarvon Petroleum Limited, FAR Limited, Gold Road Resources Limited, Highfield Resources Limited, Jumbo Interactive Limited, Kidman Resources Limited, MacMahon Holdings Limited, Mount Gibson Iron Limited, MYOB Limited, Paladin Resources Limited, Ramelius Resources Limited, Speedcast International Limited, Sundance Energy Australia Limited, Sigma Company Limited, Silver Lake Resources Limited, and Syrah Resources 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 © 2019 Guerdon Associates

ISSN 1834-8300