GuerdonNews® Volume 16 Number 3

April 2020

Dear reader,

 

Welcome to the April 2020 issue of GuerdonNews®

 

 In this newsletter we: 

• Provide a remuneration committee COVID-19 checklist

• Describe proxy adviser Glass Lewis' view of pandemic considerations on their recommendations

• List ASX 200 company executive and director remuneration changes in response to COVID-19

• Describe ISS's response to the pandemic in its recently released Guidance Note

• Summarise the annual Guerdon Associates and CGI Glass Lewis Remuneration and Governance Forum discussion points

• Welcome the opportunity for boards to put their POV within Glass Lewis's proxy advice reports

• Present Blackrock’s priorities in stewardship engagement

• Note the ASIC and APRA deferrals of important executive remuneration regulatory initiatives

 

We conclude with executive and director remuneration disclosure updates available on the GuerdonData® on-line database. And if you have any other executive remuneration or governance query, type it into your search engine with "Guerdon Associates" and you will find we will likely have provided an answer already.

April board remuneration committee COVID 19 response alternatives 

We provide a checklist

Board directors have a full plate for upcoming remuneration committee meetings. To respond to COVID-19  we provide alternatives and a checklist for handling ESG, fixed pay, discretion, STI payments and target setting, LTI and equity allocation, among other matters.

Read more

Glass Lewis's sober assessment of COVID-19 and governance   

A combination of tolerance and intolerance

Glass Lewis sees the pandemic impacting governance and its proxy advice. The provide a sober assessment of how they will respond to executive compensation, board composition and effectiveness, shareholder activism and likely M&A activities and shareholder proposals in light of the pandemic. 

Read more

ASX 200 company remuneration adjustments from COVID-19 and oil price impacts

Executives and directors share the pain 

Guerdon Associates researched changes to remuneration as a result of the pandemic and slump in the oil price. We share our findings in this article.  

Read more

ISS issues a COVID-19 guidance note

ISS applies discretion to over-ride its usually strict proxy advice policies

The proxy adviser issued a Guidance Note indicating some flexibility in its policy application given the pandemic. Some issues discussed include AGM postponements, virtual meetings, changes to boards and/or senior management, over-boarding, and of course, executive remuneration. 

Read more

2020 Guerdon Associates and CGI Glass Lewis Annual Remuneration and Governance Forum Outcomes

Proxy season in review and panel discussions

We summarise the recent pre-social distancing rules  (was it just a month ago?) Forum panel discussions and presentation:

• Proxy season in review. Read more

• The use of discretion in remuneration. Read more

• Non-financial risks . Read more 

Boards to have the last say in Glass Lewis proxy advice

An opportunity for boards to directly deliver their point of view to investors

Glass Lewis announced that it would provide boards of companies worldwide an opportunity to respond to their proxy advice within the reports they send to investors. To do so, ASX-listed companies will have to subscribe to CGI Glass Lewis, and their company feedback will be shared with all who subscribe to the proxy reports. 

Read more

Blackrock’s 2020 investment stewardship engagement priorities

Blackrock asks more E&S of companies as well as good G

The asset manager wants boards to be more accountable and align economic interests with voting rights. It is asking boards to ensure their companies align with ESG reporting standards. Companies have to also explain how it plans to make itself a favoured employer.

Read more

Regulators recalibrate their executive remuneration priorities

APRA and ASIC defer remuneration initiatives and changes 

In the face of the pandemic, APRA and ASIC have reconsidered their regulatory calendars and proposals and shifted their focus to helping companies and financial institutions respond to COVID-19. 

Read more

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Latest GuerdonData® Updates

Updates to GuerdonData®  this month include disclosures from the following 12 companies: 

AMP Ltd, Alumina Ltd, FAR Ltd, Gold Road Resources Ltd, ISignthis Ltd, Nickel Mines Ltd, Phoslock Environmental Technologies Ltd, Rio Tinto Ltd, Resolute Mining Ltd, Sigma Health Ltd, Syrah Resources Ltd, West African Resources 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 © 2019 Guerdon Associates

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