GuerdonNews® Volume 16 Number 7

August 2020

Dear reader,

 

Welcome to the August 2020 issue of GuerdonNews®

 

 In this newsletter we:  

• Review ACSI’s survey of CEO remuneration 

• Summarise CGI Glass Lewis' expectations for executive incentive outcomes, policies and practices

• Discuss a case study by ISS on making adjustments to annual incentives in light of COVID-19

• Consider the extent that the market for CEOs is open if pay is a function of supply and demand

• Update you on recent wave of monthly COVID director and executive pay adjustments

• Reveal initial findings in our global research into the extent that ESG is applied to executive remuneration

 

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

ACSI’s annual CEO pay survey 

A decade of lagging employees' earnings 

ACSI published the results of its survey of CEO remuneration based on FY19 disclosures. Fixed remuneration again lagged total employe earnings, more CEOs than prior did not receive an annual incentive, while actual pay realised varied with shareholder outcomes.

Read more

CGI Glass Lewis' likely response to various incentive outcomes 

Yeses, maybes and definitely nots revealed

The pandemic has affected companies in various ways. Some have hurt more than others. What is acceptable in each circumstance when considering how to pay incentives to your top executives? The proxy adviser CGI Glass Lewis has a view to share. 

Read more

ISS releases COVID case study

An example shows the pros and cons of moving the goalposts

ISS is exploring the ways incentives can adapt to the pandemic by providing four case studies, the first of which was published in recent weeks. ISS is also clear that it is not making recommendations. Probably a good thing too.  

Read more

CEO pay, supply and demand

According to the research, it’s all about who you know 

Recent research confirms that the vast majority of new CEOs are hired from a relatively small pool of candidates internally. Even among those who are hired from outside the companies, prior working relationships with one or more board members contribute to more than half of the candidates being hired for the position. The authors suggest that the market may not be open, and therefore efficient. But have they considered risk and return?

Read more

COVID-19 pay adjustments in ASX 200 companies

It has not ended. Surprisingly, July saw another wave.

Five companies revealed pay adjustments to their key management personnel as others ended their adjustments. We continue to track developments in our constantly-updated online database.

Read more

ESG in executive remuneration

A surprising outcome for Australia as it is ranked against other developed markets.

The Global Governance and Executive Compensation Group (GECN) globally surveyed the extent that ESG metrics are found in executive remuneration.  We reveal some early findings, which show Australia peers in major developed markets globally.

Read more

In the news

"CEO pay squeezed, but millions still flowing" , Liam Walsh, Australian Financial Review, 7 August 2020

Read more

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Latest GuerdonData® Updates

Updates to GuerdonData®  this month include disclosures from the following 3 companies: 

Credit Corp Group, Emeco Holdings, G.U.D. Holdings 

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 © 2020 Guerdon Associates

ISSN 1834-8300