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12/05/2025
Guerdon Associates continuously records and analyses ASX-listed companies’ Short Term Incentive (STI) and Long Term Incentive (LTI) award outcomes to determine the likelihood that executives achieve objectives and rewards vest.
Tables 1 and 2 below sets out ASX 100 CEO STI and LTI award outcomes over the last 5 years.
The analysis is based on incentive outcomes as a percentage of maximum opportunity. The maximum and proportion paid of maximum are the numbers Australian, UK and most European investors and proxy advisors tend to focus on.
Table 1: ASX 100 CEO STI outcome as % of maximum over 5 years
|
|
FY20 |
FY21 |
FY22 |
FY23 |
FY24 |
|
Average |
40% |
70% |
68% |
61% |
61% |
|
25th Percentile |
0% |
54% |
55% |
45% |
50% |
|
50th Percentile |
39% |
76% |
71% |
64% |
62% |
|
75th Percentile |
67% |
90% |
84% |
80% |
79% |
The median ASX 100 CEO STI outcome was lowest in FY20 and highest in FY21. This can be attributed to COVID impacts and the subsequent economic stimulus. The median STI outcome has been decreasing following FY21, albeit at a marginal rate.
Table 2: ASX 100 CEO LTI outcome as % of maximum over 5 years
|
|
FY20 |
FY21 |
FY22 |
FY23 |
FY24 |
|
Average |
47% |
46% |
54% |
58% |
52% |
|
25th Percentile |
0% |
0% |
25% |
34% |
1% |
|
50th Percentile |
48% |
43% |
51% |
63% |
53% |
|
75th Percentile |
86% |
90% |
94% |
98% |
95% |
LTI tranches lapsing in full was more common in FY20 and FY21. This could also be attributed to the impacts of COVID as the affected years formed part of the performance periods.
After FY20, on average, STI has higher vesting outcomes than LTI during the year.
Median ASX100 incentive vesting outcomes generally fall in the range of 40-60%. They vary from year to year.
Figure 1: ASX 100 STI & LTI outcome distribution across last 5-Years
The figure shows that:
- For all years other than 2020, median STI vesting was higher than LTI vesting.
- 2021 shows the highest median vesting outcome for STI.
- 2023 shows the highest median vesting outcome for LTI.
We also analysed outcomes by sector.
Table 3: FY20-24 ASX 100 CEO median STI outcome as % of maximum by sector
|
|
FY20 |
FY21 |
FY22 |
FY23 |
FY24 |
|
Materials |
55% |
77% |
71% |
60% |
58% |
|
Financials |
25% |
63% |
72% |
66% |
71% |
|
Health Care |
41% |
81% |
68% |
41% |
53% |
|
Consumer Discretionary |
24% |
93% |
58% |
60% |
62% |
|
Real Estate |
26% |
66% |
84% |
67% |
67% |
|
Energy |
48% |
79% |
88% |
68% |
54% |
|
Communication Services |
40% |
82% |
74% |
62% |
74% |
|
Industrials |
26% |
77% |
65% |
75% |
65% |
|
Consumer Staples |
69% |
75% |
68% |
59% |
46% |
|
Information Technology |
50% |
89% |
85% |
81% |
71% |
|
Utilities |
79% |
57% |
66% |
75% |
74% |
On average, the information technology sector has the highest median STI vesting, being the only sector with outcomes consistently above 70% other than for 2020.
STI vesting outcomes were highest for almost all in sectors in FY21.
Table 4: FY20-24 ASX 100 CEO median LTI outcome as % of maximum by sector
|
|
FY20 |
FY21 |
FY22 |
FY23 |
FY24 |
|
Materials |
59% |
66% |
80% |
68% |
34% |
|
Financials |
31% |
35% |
37% |
44% |
63% |
|
Health Care |
63% |
97% |
67% |
41% |
25% |
|
Consumer Discretionary |
0% |
54% |
50% |
44% |
88% |
|
Real Estate |
15% |
48% |
66% |
69% |
94% |
|
Energy |
26% |
63% |
67% |
99% |
87% |
|
Communication Services |
19% |
25% |
50% |
99% |
69% |
|
Industrials |
50% |
25% |
50% |
50% |
44% |
|
Consumer Staples |
17% |
33% |
74% |
72% |
10% |
|
Information Technology |
100% |
100% |
100% |
100% |
50% |
|
Utilities |
72% |
35% |
25% |
16% |
53% |
The information technology sectors saw the highest median LTI vesting other than for FY24. The health care sector saw a downwards trend in LTI outcomes across the years, with 97% in FY21 compared to 25% in FY24. FY23 saw the highest vesting outcomes, with 3 sectors achieving greater than 90%.
Across all 5 years, STI outcomes averaged 60% and LTI outcomes averaged 51%.
© Guerdon Associates 2025
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