Welcome to the October 2020 issue of GuerdonNews^®

 In this newsletter we:  

• Note the significant difference between absolute TSR and relative TSR LTI vesting outcomes

• Provide a checklist for considering ESG executive incentive plan measures

• Consider if the vast differences between industries on LTI vesting suggest executive pay is 99% luck

• Update news on COVID related ASX 200 board fees and executive pay adjustments

• Count the reduction in ASX 200 women CEOs and the absence of a line management pipeline

• Consider accountability under Victoria's OH&S laws for COVID-19 deaths 

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.

Absolute TSR performance rewards more highly than relative TSR

We compare LTI vesting outcomes on these alternative long term incentive measures 

In Guerdon Associates’ continuing research of LTI vesting outcomes, we note the differences between vesting outcomes of LTI plans that include absolute TSR and relative TSR. For companies considering restricted share grants in place of classic LTI plans, this historical analysis provides a guide as to what may be fair. 

Read more

What to avoid when introducing ESG factors in incentive plans

We provide a checklist

It makes sense when ESG is an accepted part of business strategy. It is not so good as a means for good public relations. 

Read more

LTI vesting outcomes vary significantly by industry

It pays to be a techie

We dissect the data to reveal trends by industry. It would appear that performance pay outcomes may be less about executive prowess, and more to do with just being in the right industry at the right time. We find that technology companies experience the highest vesting. Which companies experience the lowest? Read on.  

Read more

ASX 200 COVID-19 board fee and executive remuneration adjustments 

Ten more companies announce adjustments in September 

We collate and present a summary of the adjustments for ASX 200 companies.

Read more

Gender diversity in management going the wrong way

And the shallow female line management pool narrows the CEO pipeline

It appears that the pipeline of senior women executives with a view to the CEO position is narrow. Despite this, our research finds that few companies include a gender diversity metric in their executive incentive plans. One super fund is trying to directly influence this.

Read more

Victorian OHS laws

How accountable are public servants?

Lax enforcement of quarantining resulted in multiple COVID 19 deaths. Company directors are well aware of the consequences for failures and breaches in workplace health and safety. Governance and accountability of public servants is now under review.

Read more

Latest GuerdonData^® Updates

Updates to GuerdonData^®  this month include disclosures from the following 24 companies: 

Bendigo and Adelaide Bank Ltd, Bellevue Gold Ltd, BHP Group Ltd, Brickworks Ltd, Boral Ltd, Computershare Ltd, Crown Resorts Ltd, Healius Ltd, Ioneer Ltd, Karoon Energy Ltd, Kogan.com Ltd, Maca Ltd, McMillan Shakespeare, Myer Holdings Ltd, New Hope Corporation Ltd, Nufarm Ltd, Orora Ltd, Qantas Airways Ltd, Red 5 Ltd, Ramsay Health Care Ltd, SOUTH32 Ltd, Sonic Healthcare Ltd, Skycity Entertainment Group Ltd, Wesfarmers 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.