GuerdonNews® Volume 15 Number 4

May 2019

Dear reader,

 

Welcome to the May 2019 issue of GuerdonNews®

 

 In this newsletter we:

• Present key FY 2020 focus areas for remuneration committees

• Investigate the connection between LTI measures and share buybacks

• Consider ACSI’s advocacy for listed company governance changes

• Wonder if APRA’s enforcement strategy will overcome bank bias to investor concerns

• Welcome a new proxy adviser platform that permits companies to state a contrary point of view 

• Suggest a refinement of APRA’s BEAR variable remuneration assessments

• Analyse the diversity of ASX 300 director tenure

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

Key FY2020 remuneration committee priorities

Recommended RemCo rumination 

We provide a checklist for boards to keep in mind moving into FY 2020, including an expanded remuneration committee role, non-financial metrics and planning for “black swans”.

Read more

LTI measures and share buybacks 

Are Australian executives gaming the system?

We present analysis on whether share buybacks are motivated by the need by executives to inflate LTI performance outcomes. 

Read more

ACSI advocates for changes to corporate governance 

ACSI’s 4 proposals  

To strengthen corporate accountability and manage ESG risks, ACSI proposes a binding vote on remuneration, disclosing CEO pay ratios, holding annual director elections, and allowing shareholders to introduce non-binding resolutions at meetings.

Read more

APRA’s enforcement strategy 

Could it be used to better balance regulator and investor remuneration requirements?

APRA uses guiding principles to assess the level of action against an offending entity and considers the proportionality of the action, the entity’s history and behaviour, and whether other agencies take action in the matter at hand. 

Read more

CGI Glass Lewis may offer an avenue for company feedback to investors

A new platform is to be trialled

The proxy adviser offers a new service to issuers to voice their differences in opinion which will land in investors inbox with the proxy adviser's report. Currently on trial in the US, a trial is also being considered for the Australian FY 2019 season.

Read more

APRA’s tweak to BEAR variable remuneration

Guerdon Associates proposes a further refinement

There is a way to ensure that the deferral calculation involving variable remuneration is not skewed by an accountable person’s non-ADI responsibilities.

Read more

Director tenure diversity

Is there a skew to inexperience?

We provide a breakdown on director tenure in the ASX 300 by market capitalisation and industry. 

Read more

Latest GuerdonData® Updates

Updates to GuerdonData®  this month include disclosures from the following 4 companies: 

Macquarie Group Ltd, Sigma Company Limited, Ardent Leisure Group Ltd, and Atlas Arteria 

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