As shareholders are asked to get more involved with executive pay monitoring, the problem for many investors is how to judge what is reasonable – traditional bonus plans have resulted in plans which are not aligned with performance. Basing bonuses on stock prices exposes them to external factors, including irrational behaviour that can also influence stock prices. […]
Read MoreThe ASX Corporate Governance Council has released a communiqué on its recent work programme and it proposal to make changes to the ASX Corporate Governance Principles and Recommendations (‘the ASX Code’) with an expected implementation date from 1 July 2010. Following the publication of the Corporations and Markets Advisory Committee (CAMAC) earlier in 2009 of […]
Read MoreIndia’s review of corporate governance prompted by the Satyam scandal is now expected to result in the issue of corporate governance guidelines by the end of December, according to India’s Corporate Affairs Minister, Salman Khurshid. The guidelines are expected to be voluntary for the first year and are expected to cover issues such as directors’ […]
Read MoreThere’s no small irony that Lloyds Banking Group will be asking 2.8 million private shareholders to back its £13.5 billion fundraising, the biggest deal of its kind in UK history, on the same day that Sir David Walker makes his final recommendations to Her Majesty’s Government on how the governance of the UK financial sector […]
Read MoreThe NAPF has written to the Chairmen of all FTSE 350 companies urging executive pay restraint and making it clear that company remuneration should be aligned with the long-term interests of shareholders, including pension funds. The letter suggests that a review of accepted best practice is warranted as it ‘serves neither shareholders nor management well’. […]
Read MoreWe noted last month that Australia’s Productivity Commission had released a detailed discussion document which included a package of suggested changes to the Corporations Act and ASX listing rules. Over 50 submissions were made to the Commission following the publication of the discussion document and before last Friday’s deadline. The Commission is now preparing its […]
Read MoreThe Accounting Standards Board (ASB) published the results of its review of narrative reporting on 29 October, and its release was trailed by separate reports from PricewaterhouseCoopers (PwC) and Deloitte. PwC “recognise that reporting is not made easy by the regulatory demands imposed on all companies today, but sadly too many reports display the dead […]
Read MoreManifest is pleased to announce the release of its latest publications: The Executive Director Total Remuneration Survey Unlike many other pay surveys, the Total Remuneration Survey takes into account the changing mix of compensation from just salary and bonus to a total mix of pay where 80% is performance related. As schemes and disclosures have […]
Read MoreThe Australian Securities and Investment Commission this week announced it intended bringing civil charges against the enitre 2007 board and a former Chief Financial Officer of various entities withing the Centro Properties Group and Centro Retail Group. This is the first case brought where the requirement that a listed entity’s CEO and CFO declare in […]
Read MoreThe first big week of Australian proxy season has seen a number of revolts on executive pay, with one ASX 100 company losing the remuneration report vote and two others seeing very significant dissent. At Downer Edi, the remuneration report was defeated, with investors reacting to reduced performance hurdles for the long-term incentive plan and […]
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