Well, not exactly the devil, but those investor and proxy governance groups.

We have heard this many times – the argument that variety and tailored pay for performance solutions that best optimise shareholder returns are not applied because they fail one or more of the various prescriptions of these groups. In our experience we have not had a pay policy or program criticised because it did not meet a standard prescription. Australia is fortunate that all our proxy and governance groups will listen to pay proposals. Often where there is failure to have a pay proposal supported, it can be attributable to a deficiency in communication. That is, if a pay proposal is truly in the best interests of shareholders and has been rejected, it seems to be due to an absence of understanding that could be remedied with direct, clear and concise communication.

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