GuerdonNews® Volume 16 Number 4

May 2020

Dear reader,

 

Welcome to the May 2020 issue of GuerdonNews®

 

 In this newsletter we: 

• Provide a pandemic alternative to executive long-term incentives

• Summarise the UK Investment Association’s pandemic remuneration guidance as a checklist for reactions to company remuneration reports

• Provide a breakdown of ASX 200 company  attributes which have announced actions to reduce pay

• Assess whether now is a good time to grant share options

• Test a hypothesis that CEOs with high shareholdings are more willing to take a pay reduction

• Note that the global governance body of owners appear to have given up on shareholder primacy, requiring companies to consider pandemic E&S issues

• Take a 2 minute survey of those of you considering pandemic pay adjustments

• Provide a link to our live pandemic database tracking ASX 200 remuneration adjustments

 

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.

Time to ditch the LTI? 

A crisis provides an opportunity

The uncertainty caused by the pandemic and the unknown economic recovery time make the setting of LTI performance targets tricky, if not impossible. An alternative exists that has won acceptance in the UK.

Read more

May's autumnal ASX 200 remuneration changes   

Guerdon Associates tracks pay responses to the pandemic in real-time

Some changes this month are not about reductions in pay

Read more

UK Investment Association pandemic executive remuneration guidance

A useful checklist for how investors are likely to react to executive pay reports

The UK Investment Association has responded to remuneration committees’ questions on what asset managers expect. These include answers to questions on dividend payments, adjustment of incentive performance conditions, what to do with 2020 grants already made, the basis for making grants etc.  

Read more

Who is coughing up for COVID-19

Guerdon Associates breaks down the changes seen so far in the ASX 200

We analyse and present the changes with respect to the personnel and sectors affected, the timing of the changes, and the amounts concerned

Read more

Granting options in a recession

While interest rates are low, volatility is high, so are options worth considering?

Guerdon Associates discusses the pros and cons of an option grant.

Read more

Does CEO share ownership make a difference?

Is there a link between a CEO’s pay reduction and her share ownership?

We analysed whether a CEO’s shareholding value had an impact on how much his or her pay was reduced in response to the pandemic

Read more

Guerdon Associates survey of your intent

A 2-minute check-up - tops

We ask what is your likely action in light of the pandemic. You will get the results personally delivered.

Read more

Global body representing share owners puts stakeholder primacy head of shareholder primacy

ICGN may be considering a broader social license to operate 

In the face of the pandemic, the International Corporate Governance Network of share owners has emphasised stakeholders other than themselves in how companies respond to COVID-19. 

Read more

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Latest GuerdonData® Updates

Updates to GuerdonData®  this month include disclosures from the following 2 companies: 

Omni Bridgeway Ltd, United Malt Group 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

ISSN 1834-8300