Welcome to the September 2020 issue of GuerdonNews^®

 In this newsletter we:  

• Find that LTI actual vesting varies from discount expectations if LTIs were to be replaced by fixed equity

• Compare ASX listed mining CEO ESG incentives against global competitors

• Test if companies receiving government COVID-19 support adjusted remuneration

• Summarise Australian ESG and pay disclosures required by large institutional investors 

• Were inundated with a 2nd wave of ASX 200 COVID-19 remuneration adjustments

• Summarise the Future Fund’s executive remuneration expectations this AGM season

• Provide an update of UK pay regulation changes applicable to more Australian financial companies

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.

The probability of executive LTI vesting 

Investor LTI value discounts required in exchange for a restricted share grant may not align 

How likely is an executive LTI to vest? We study the vesting outcomes of the past three years by the types of measures and as a whole. The results will inform those considering what discount to apply to alternative restricted equity grants in place of traditional performance-hurdled LTI. 

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Mining CEO pay sensitivity to ESG measures

We compare to global competitors

We examine the types of ESG measures employed by resources companies in Australia, the UK and Canada. We also look at where in the pay mix ESG measures are most likely to be included and their effectiveness. 

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COVID-19 government support and board and executive pay

Are companies taking part in government support programs really in need of them?

We perform analysis to determine whether the amount of funding i.e. JobKeeper, is higher for companies that made remuneration adjustments because of the pandemic. We also find out which industries accessed the funding.  

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Gaps in climate-related disclosures and executive pay

A $2 trillion Australian institutional investor group shares findings of its survey 

Investors are looking for better company disclosures that show executive and board expertise on climate-related issues. There is an expectation to show the link between performance and executive remuneration. Boards may have to think more critically on the associated risks.

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August ASX 200 remuneration pandemic adjustments 

First a trickle, now a tidal wave

With the release of the latest public FYE results disclosures, a slew of companies made public their COVID-19 pay adjustments to the remuneration of their executives and directors. There were many more than in prior months. We track and analyse the changes.

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The Future Fund and executive remuneration

The sovereign wealth fund telegraphs its thinking

The Future Fund will treat each AGM voting decision on a case-by-case basis. It urges boards to utilise a pub test when considering remuneration outcomes for executives that reflect that pain felt by others in the company. While the the Fund will not ordinarily support restricted share plans it indicated it is open to a  performance-based LTIs with restricted shares if a significant value discount is applied.

Read more

UK regulatory remuneration changes

Will impact smaller Australian financial services companies in the UK

The changes to the Capital Requirements Directive mean that previously exempt Australian companies and subsidiaries will be liable to remuneration regulations. Bankers’ bonus caps and deferral thresholds are affected.

Read more

Latest GuerdonData^® Updates

Updates to GuerdonData^®  this month include disclosures from the following 159 companies: 

AGL Energy Ltd, Arena REIT, Baby Bunting Group Ltd, Breville Group Ltd, Commonwealth Bank Of Australia, Centuria Capital Group, Downer EDI Limited, Evolution Mining Limited, Goodman Group, Magellan Financial Group Limited, Newcrest Mining Limited, Navigator Global Investments Limited, Transurban Group, Telstra Corporation Limited, Altium Limited, Beach Petroleum Limited, Bluescope Steel Limited, GWA  Group Ltd, Imdex Limited, JB  Hi-Fi Limited, Lynas Corporation Limited, Lend Lease Corporation Limited, Abacus Property Group, ARB Corporation Limited, Cochlear Limited, Coles Group Limited, Estia Health Limited, Ingenia Communities Group, Monadelphous Group Limited, Money3 Corporation Limited, Netwealth Group, SG Fleet Group Limited, Sims Metal Management Limited, Virtus Health Limited, The A2 Milk Company, Burson Group Limited, Carsales.Com Limited, CSL Limited, Corporate Travel Management Limited, Domino's Pizza Enterprises Limited, Data#3 Limited, Dexus Property Group, EML Payments Limited, Fletcher Building Limited, Hotel Property Investments, Mount Gibson Iron Limited, Mineral Resources Limited, Megaport Limited, Nearmap Ltd, Northern Star Resources Ltd, NRW Holdings Limited, Pact Group Holdings Ltd, Saracen Mineral Holdings Ltd, Silver Lake Resources Limited, Service Stream Limited, Tabcorp Holdings Limited, Tassal Group Limited, Vicinity Centres, Vocus Communications Limited, Wisetech Global Ltd, Audinate Group Limited, Auckland International Airport Limited, ASX Limited, Codan Limited, Domain Holdings Australia Limited, Growthpoint Properties Australia, IDP Education Ltd, Infigen Energy, IPH Limited, Integrated Research Limited, Medibank Private Limited, Origin Energy Limited, Pro Medicus Limited, Perpetual Limited, The Star Entertainment Group Limited, Southern Cross Media Group Limited, Webjet Limited, BWX Limited, Inghams Group, Mirvac Group, Mayne Pharma Group Limited, Suncorp Group Limited, AMA Group Ltd, Aurelia Metals Limited, Australian Pipeline Trust, Bravura Solutions Limited, Cleanaway Waste Management Limited, Flexigroup Limited, Japara Healthcare Limited, Jumbo Interactive Limited, Lovisa Holdings Limited, Macmahon Holdings Limited, National Storage REIT, Polynovo Limited, Perseus Mining Limited, Regis Resources Limited, Steadfast Group Limited, Spark New Zealand Limited, Seven Group Holdings Limited, Whitehaven Coal Ltd, Worleyparsons Limited, Ardent Leisure Group Ltd, Afterpay Touch Group Limited, Accent Group Limited, Bega Cheese Limited, Cromwell Property Group, Clinuvel Pharmaceuticals Limited, Carnarvon Petroleum Limited, Cedar Woods Properties Limited, Flight Centre Limited, Independence Group NL, Link Administration Holdings Limited, Mesoblast Limited, Nine Entertainment Co. Holdings Limited, Platinum Asset Management Limited, Regis Healthcare Limited, Sandfire Resources NL, Starpharma Holdings Limited, Woolworths Limited, Lifestyle Communities Limited, Brambles Industries Limited, Charter Hall Group, Austal Limited, Aventus Group, Chorus Limited, Fortescue Metals Group Ltd, GDI Property Group, Infomedia Limited, Monash IVF Group Limited, NIB Holdings Limited, Ramelius Resources Limited, Reliance Worldwide Corporation Limited, St Barbara Limited, Superloop Ltd, Super Cheap Auto Group Limited, Senex Energy Limited, Ansell Limited, Austbrokers Holdings Limited, Bingo Industries Limited, Blackmores Limited, Hub24 Limited, IVE Group Limited, Nanosonics Limited, Perenti Global Ltd, Qube Holdings Limited, Stockland, Treasury Wine Estates Limited, Western Areas NL, Avita Medical Ltd, Hansen Technologies Limited, Nextdc Ltd, Orocobre Limited, Pilbara Minerals Ltd, Village Roadshow Limited, Westgold Resources, Bubs Australia Limited, Cooper Energy Limited, IOOF Holdings Limited, Sealink Travel Group 

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.