Board directors, proxy advisors, and investors often ask why remuneration for some executive positions is disclosed while others are not.

Guerdon Associates previously looked at the number of disclosed executive Key Management Personnel (KMP) in the ASX 300 back in 2018 (see HERE:), excluding executive KMP that only served part of the year.

As shown in Table 1, the range of executive KMP continues to be consistent with prior research, ranging from 0 named executive KMP for companies to a maximum of 12. In the ASX 200, there is a median of 3 disclosed executive KMP.

The financial sector continues to have the most disclosed executive KMP on average and at the median. This may be due to the complexity and large business operations common within companies in the financial sector, requiring group executive committee coordination.

Table 1: Number of executive KMP by Sectors excluding part year KMP

 

Table 2 shows the number of disclosed executive KMP in ASX 200 companies segmented by market capitalisation quartiles. Table 2 shows companies in the upper 75^th percentile (above $10,000m market capital) disclose more executive KMP than counterparts. Below the median of the ASX 200 (below $4,000m) there are no differences observed in quartiles.

Table 2: Number of Executive KMP by market capitalisation quartiles

© Guerdon Associates 2024 Back to all articles