GuerdonNews® Volume 18 Number 9

October 2021

Dear reader,

 

Welcome to the October issue of GuerdonNews®

 

 In this newsletter we:  

• Provide a pre-IPO executive remuneration checklist 

• Peek at Australia's standing in our upcoming annual GECN executive remuneration ESG incentive study

• Compare what countries disclose on executive pay as per recent AASB research

• Consider one country's plight attracting and retaining bankers given their pay regulations 

• Weigh the pros and cons of seeking 3 years of director equity grants in one shareholder vote

 

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. 

 

Pre and post IPO executive pay - a checklist

Act early before it is too late

Australia is maintaining high levels of IPO activity. Executive remuneration is often overlooked, at least until the last minute. However, investors are viewing remuneration as important to the success of the company post IPO. To avoid IPO pitfalls in pay structures and governance, we provide a checklist for the newly appointed board to consider.

Read more

ESG in global executive remuneration - how countries compare

A preview prior to publishing the GECN annual survey report

Guerdon Associates' GECN Group will soon publish the results of its annual research on global trends in ESG and executive incentive pay. We compare the companies incorporating ESG measures in incentive plans across several jurisdictions. This article will be the first of several upcoming ones expanding on the findings of our research. We find that Australia continues to put more of CEOs' money on the line for ESG results than other countries. As a pre-requisite for global investors' funds, one may hope for more dollars flowing down under.

Read more

Review of executive remuneration disclosure requirements across countries

AASB suggests less red tape 

The Australian Accounting Standards Board recently published a report on remuneration disclosure requirements across 9 jurisdictions. The report covered listed companies, not-for-profits and the public sector. The research revealed similarities across the regions but also differences in the breadth and depth of disclosures. Comparatively, Australia requires more detail for listed companies, but less for NFPs. On a purely comparative basis the AASB suggests that perhaps Australia could consider cutting back on listed company disclosures.

Read more

Attracting and retaining talent in the financial sector

Money talks....

A recent case abroad highlights the potential heavy handed regulations can have on attracting and retaining executives in the banking sector. The observation supports comments made in various submissions to Treasury's proposed FAR and APRA's proposed CPS 511 executive pay regulations. That is, that the regulations could lead to an uneven playing field with less regulated and/or less constrained competitors, with similarly undesirable outcomes.

Read more

Shareholder approval for multi-year director equity grants

Pros and cons of locking in multi-year grants at one AGM

Boards may seek approval for equity grants for the next three years at the one AGM. This approach might set your company strategy clear at the outset, but flexibility is foregone. As seen with the pandemic, changes in market conditions can force a rethink of the need for such grants.

Read more

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Latest GuerdonData® Updates

There are 39 updates to GuerdonData®  this month.   

Aurelia Metals Limited, Australian Strategic Materials Limited, Betmakers Technology Group Ltd, Bellevue Gold Limited, Codan Limited, Coles Group Limited, CSL Limited, Crown Limited, Dubber Corp Ltd, Event Hospitality And Entertainment Ltd, GUD Holdings Limited, Homeco Daily Needs, Imugene Limited, Johns Lyng Group Limited, Juno Minerals Ltd, Karoon Gas Australia Limited, Kogan.Com Ltd, Liontown Resources Limited, Mystate Limited, Nine Entertainment Co. Holdings Limited, New Hope Corporation Limited, Novonix Limited, Origin Energy Limited, Paladin Resources Limited, Piedmont Lithium Ltd, PPK Group Limited, Perpetual Limited, Qantas Airways Limited, Ramsay Health Care Limited, South32 Limited, Shopping Centres Australasia Property Group, The Star Entertainment Group Limited, Sonic Healthcare Limited, SeaLink Travel Group, Strike Energy Limited, Sezzle Inc, Tassal Group Limited, Temple & Webster Group Ltd, Vulcan Energy Resources 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.

Copyright © 2021 Guerdon Associates

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