Compelling ideas for providing non-executive directors with more equity

As noted in the above article, the recent furore over directors’ margin loans secured against company stock may result in an additional disclosure burden.  But there may be easier and less controversial ways for directors to own shares in the companies over which they have such a direct influence.

The 2008 Remuneration Forum for institutional investors, directors and executives, sponsored by Guerdon Associates and CGI Glass Lewis, was held last month at Allens Arthur Robinson’s Melbourne premises.  Feedback from participants on presentations and the forum discussions were overwhelmingly positive.  While we will provide a detailed communiqué from these proceedings in next month’s GuerdonNews® (and on our website in the interim), this month we are able to provide you with compelling ideas for director remuneration presented by one of the directors at the Forum.

John Green is a public company director, writer and former investment banker.  He stimulated the Forum with ideas for ensuring directors obtain and maintain significant shareholdings in their companies.  He has provided permission for us to publish his presentation.  In it you will note that Mr. Green indicated that tax law might need to be amended to accommodate some of these ideas.  Guerdon Associates believes Mr. Green’s suggested approaches could be accommodated within existing laws and regulations (subject, of course, to a detailed analysis of how a company is to implement these ideas).

See his presentation here.

© Guerdon Associates 2024
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