Welcome to the November 2020 issue of GuerdonNews^®

 In this newsletter we:  

• Compare what CEOs get paid relative to their annual incentive targets

• Provide a remco checklist to ensure executive fringe benefits pass the pub test

• Summarise interesting board composition findings by proxy adviser Ownership Matters

• Assess proxy adviser ISS's ability to identify poor remuneration practices

• Find energy companies are petty poor when it comes to paying for improved ESG performance

• Discover that almost half of ASX 200 companies are making COVID-19 remuneration adjustments

• Wonder what the rest of the world is doing for Australia to lead on linking governance and performance

• Compare our ASEAN neighbours' corporate disclosure standards

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 likelihood of STI objectives being achieved

CEOs tend to nail it 

We crunched the numbers to find out how much of target STI is met by executives. For this we looked at the ASX200 companies over FY18-FY19. Turns out, boards are quite good at setting targets. 

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A remco checklist for executive perks

AKA, passing the pub test

Recent media coverage for what some may see as immaterial executive pay practice has inflicted a price on the public sector executives concerned.  When in doubt, ask the simple question: does it pass that benchmark of public discourse – the “pub test”? We provide a  remuneration committee checklist to ensure executive perquisites do not result in stakeholder distractions. 

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The composition of ASX 300 boards

Why is it that poor performance does not contribute to board renewal?

Proxy adviser Ownership Matters released a report that researches board composition over the past fifteen years. It appears that directors have a fondness for the familiar. The report also highlights a troubling turnover trend among female directors.  

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How good is ISS at identifying poor remuneration practices?

Well, it depends on the month...

A recent study looked into how useful ISS “against” votes were in identifying poor remuneration practices in US companies. The study found that while ISS votes could highlight poor pay practices, they were only effective in non-December year end companies. It also seems that some do a better job than ISS.

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Energy companies do not pay as well for better ESG performance

No coincidence that most are based in the US 

Our GECN Group global research into ESG measures in incentive plans reveals trends across sectors. Energy companies may have a high prevalence in the use of ESG metrics in CEO incentive plans, but give it a lower weighting than other sectors. But this varies with the country in which the energy company is listed.

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Almost 50% of ASX 200 companies are making COVID-19 remuneration adjustments

And counting....this list continues to grow

We record the additional ASX 200 companies making remuneration adjustments in the month of October.

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What is the link between governance and performance?

Australia has some attributes that rank it highly

Calvert Research and Management conducted research into links between corporate governance and performance and found Australia is well placed, with strong company practices and strong governance rules.

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ASEAN corporate governance

No corporate shining light

A recent report placed Singapore third among a group of countries in the standard of disclosures found in top companies across the ASEAN. This is surprising given the island’s reputation for public governance. We compare this with Australia’s legislative environment and recent royal commissions.

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Latest GuerdonData^® Updates

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

Dacian Gold Ltd, Seek Ltd, ZIP Co Ltd, Bank of Queensland Ltd, Retail Food Group Ltd, SCA Property Group, Australian Pharmaceutical Industries Ltd, Premier Investments Ltd, Ainsworth Game Technology Ltd, Magnis Energy Technologies Ltd, New Century Resource Ltd, Soul Pattinson (W.H) 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.