Welcome to the September issue of GuerdonNews^®

 In this newsletter we:  

• Consider discretion to partially forfeit incentive payments more frequently 

• Describe the five executive remuneration topics preoccupying investors this proxy season

• Summarise new university executive remuneration disclosure standards

• Confirm expected changes to bank, superannuation and insurer remuneration regulation

• Look at the relationship between a CEO’s tenure and company value

• Present ACSI's findings on ASX 200 company climate change disclosures

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. 

Discretionary adjustments to remuneration

More frequent, discerning and partial application of incentive forfeitures 

Guerdon Associates recently held a director roundtable discussing discretionary adjustments to incentives. The key themes that emerged include disclosure, frequency, extent, individual accountability, internal communications, incident reporting and investor expectations.

Read more

The top 5 executive pay issues this proxy season

A moving feast

The 2021 AGM season will be dominated by JobKeeper receipts and executive incentive payments, ever higher expectations of ESG standards in target setting, methods for executive retention after 2 successive years of COVID 19, disclosure and pay frameworks, fixed remuneration adjustments, and more detail on target setting and achievement in remuneration disclosures.

Read more

A new university leadership remuneration disclosure standard

But will news media, politicians and others use them well?

The University Chancellors Council (UCC) announced a new code last month for disclosure of vice chancellor and senior staff remuneration and governance. We know that Australian universities pay well compared to foreign peers. But this is because on the whole (with a few exceptions) they are larger, rank higher on teaching  and research standards, and generate more revenues that their counterparts. But we are not confident that the new standards, or external commentators on their relatively high pay, will bring this out.

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Bank, superannuation and insurer pay regulation meets expectations 

Includes an acknowledgment that some may choose not to provide variable remuneration.

APRA has published the draft legislation CPS 511 after two rounds of consultation. Changes include being more explicit in the responsibility borne by the board for remuneration frameworks, mitigating third party service provider compensation arrangements, and changes to the Significant Financial Institution (SFI) thresholds. It does nothing to ensure an SFI has to apply any variable remuneration at all in order to encourage sound prudential management.

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Company value and CEO Tenure

Is there a use-by date on CEOs?

A recent study indicated that there is a time after which a CEO’s tenure may prove detrimental to the company’s value. Is this true across CEOs, firms, and other external conditions? Three patterns emerge.

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ASX200 and climate change related disclosures

Momentum is building

The Australian Council of Superannuation Investors (ACSI) released its latest survey of ASX 200 companies'  strategies in response to climate change. There is improvement in the number of companies which are taking it seriously, through adoption of TCFD disclosures, announcing net zero and emissions reduction targets. More work needs to be done on addressing scope 3 emissions. 

Read more

Latest GuerdonData^® Updates

There are 142 updates to GuerdonData^®  this month.   

The A2 Milk Company, Abacus Property Group, Audinate Group Limited, Adairs Limited, Australian Ethical Investment Ltd, AGL Energy Ltd, Auckland International Airport Limited, Altium Limited, AMA Group Ltd, Ansell Limited, Afterpay Touch Group Limited, ARB Corporation Limited, Arena REIT, Austal Limited, ASX Limited, Austbrokers Holdings Limited, Avita Medical Ltd, Aventus Retail Fund, Accent Group Limited, Aurizon Holdings Limited, Bapcor Limited, Baby Bunting Group Ltd, Bega Cheese Limited, Blackmores Limited, Beach Petroleum Limited, Breville Group Ltd, Bluescope Steel Limited, Bubs Australia Limited, Bravura Solutions Limited, Carsales.com Limited, Commonwealth Bank Of Australia, City Chic Collective Ltd, Challenger Ltd, Charter Hall Long WALE REIT, Cromwell Property Group, Chorus Limited, Cochlear Limited, Charter Hall Retail REIT, Corporate Travel Management Limited, Clinuvel Pharmaceuticals Limited, Cedar Woods Properties Limited, Cleanaway Waste Management Limited, Domain Holdings Australia Limited, Domino's Pizza Enterprises Limited, Downer EDI Limited, Deterra Royalties Ltd, Data#3 Limited, Dexus Property Group, Estia Health Limited, Emeco Holdings Limited, EML Payments Limited, Evolution Mining Limited, Fletcher Building Limited, Fineos Corp Ltd, Fortescue Metals Group Ltd, GDI Property Group, Goodman Group, Growthpoint Properties Australia, Home Consortium Ltd, Hotel Property Investments, Hub24 Limited, Humm Group Ltd, Harvey Norman Holdings Limited, Integral Diagnostics Ltd, IDP Education Ltd, IOOF Holdings Limited, Infomedia Limited, Independence Group NL, Imdex Limited, Ingenia Communities Group, Inghams Group, IPH Limited, Integrated Research Limited, JB Hi-Fi Limited, Jumbo Interactive Limited, Lifestyle Communities Limited, Lend Lease Corporation Limited, Link Administration Holdings Limited, Lovisa Holdings Limited, Lynas Corporation Limited, Magellan Financial Group Limited, Mirvac Group, Mount Gibson Iron Limited, Mineral Resources Limited, McMillan Shakespeare Limited, Money3 Corporation Limited, Megaport Limited, Medibank Private Limited, Mesoblast Limited, Mayne Pharma Group Limited, Nanosonics Limited, Nick Scali Limited, Newcrest Mining Limited, Nearmap Ltd, NIB Holdings Limited, National Storage REIT, Northern Star Resources Ltd, Netwealth Group, News Corporation Inc, Nextdc Ltd, Omni Bridgeway Ltd, Opthea Ltd, Orora Limited, Orocobre Limited, Paradigm Biopharmaceuticals Ltd, Pointsbet Holdings Ltd, Pilbara Min Ltd, Pinnacle Investment Management Group Limited, Polynovo Limited, Perseus Mining Limited, Qube Holdings Limited, REA Group Ltd, Reece Australia Limited, Ramelius Resources Limited, Regis Resources Limited, Reliance Worldwide Corporation Limited, St Barbara Limited, Steadfast Group Limited, SEEK Limited, Sandfire Resources NL, Stockland, Silver Lake Resources Limited, Service Stream Limited, Super Cheap Auto Group Limited, Suncorp Group Limited, Seven Group Holdings Limited, Southern Cross Media Group Limited, Senex Energy Limited, Tabcorp Holdings Limited, Transurban Group, Telstra Corporation Limited, Treasury Wine Estates Limited, Tyro Payments Ltd, Uniti Group Ltd, Vicinity Centres, Virtus Health Limited, Wesfarmers Limited, Whitehaven Coal Ltd, Worley Limited, Woolworths Limited, Western Areas NL, Wisetech Global 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.