Welcome to the March issue of GuerdonNews^®

 In this newsletter we:  

• Reveal how to improve shareholder support for your remuneration report

• Suggest improvements to APRA for a more effective CPS511 executive pay regulation

• Identify the three ESG levers for better performance and investor response

• Note that invitations have been sent for our annual forum undertaken with proxy adviser CGI Glass Lewis

• Disclose how CEOs in companies of various sizes fared in STI award outcomes

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. 

Shareholder support for remuneration reports

Is there a secret sauce?

We analysed votes against remuneration reports using data over a period of nine years. We compared them against financial metrics and found a couple of statistically significant relationships.

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Solutions to problems with APRA's pay regulation

Pay governance, un-level playing fields, and subversion of intent present in current version

We raise these and other issues in response to APRA’s latest iteration of the draft CPS511 regulation. In our response, we highlight potential gaming with respect to deferral requirements, the ill-suited definition of variable remuneration, the discussion around non-financial measures and more. But for all of these, there are solutions that are pragmatic, and are positive for better prudential management.

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ESG and executive pay

The three key board levers for more effectiveness

ASIC, APRA, ACSI, the ASX Corporate Governance Council and others require more disclosure, as do regulators in the EU and the United States. Asset managers are now required to indicate how sustainability issues influence their investment choices. MSCI revealed that ESG factors are sucking up more investment dollars from asset managers. Consequently, investors are increasing pressure on companies to do more. Guerdon Associates provides guidance and suggests three levers to consider for better effectiveness.

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The 15^th Remuneration and Governance Forum: 23 March and 30 March

All systems are go

Our annual Forum, co-sponsored by Guerdon Associates and CGI Glass Lewis, kicks off in a new online format and will see discussions around ESG and other non-financial measures in executive incentive plans. We will also discuss and debate workplace bullying and the board's responses to it.

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CEO STI award outcomes by size

Size does not matter, apparently.

Building on our previous analysis on STI award outcomes by sector, we reveal the award outcomes by company size and find that ASX20 companies had the lowest outcomes.

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Latest GuerdonData^® Updates

Updates to GuerdonData^®  this month include disclosures from the following 28 companies: 

Adbri Limited, Atlas Arteria, Appen Limited, Coca-Cola Amatil Limited, Costa Group Holdings Limited, Dicker Data Limited, G8 Education Limited, GPT Group, Iluka Resources Limited, IRESS Market Technology Limited, Invocare Limited, Janus Henderson, Ooh Media Limited, Oil Search Limited, QBE Insurance Group Limited, Rio Tinto Limited, Scentre Group, Smartgroup Corporation Ltd, Spark Infrastructure Group, Santos Limited, Sydney Airport, TPG Telecom Ltd, Viva Energy Group Ltd, Woodside Petroleum Limited, AMP Limited, Cimic Group Limited, Nickel Mines Limited, FAR Limited 

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.