Nearly $A30 million in payouts to departing chief executives (CEOs) helped to increase the pay of the 300 highest-earning Australian CEOs by 5%, who for the first time will receive an average pay packet of more than $3 million a year, according to The Australian Financial Review Salary Survey 2015. The publication reports that the average CEO’s pay packet is […]
Read MoreThe Swiss Federal Council recently published their “Proposal for an Ordinance against abusive remuneration practices” in response to the successful popular referendum on what has been dubbed the “Minder Initiative”. It is the first formal consultation stage ahead of the tabling of a formal legislative proposal, timetabled for November, in time for a January 1st 2014 implementation date. The […]
Read MoreThe Association of British Insurers have published the 2012 update to their Principles of Remuneration, with a number of key changes focusing on simpler remuneration structures while offering flexibility for special cases. Two new paragraphs have been inserted in the Principles, while content from the former Appendix is moved to an expanded Guidance section as […]
Read MoreVince Cable, Secretary of State for Business, Innovation and Skills, this week announced the latest government consultation on executive pay, this time aimed specifically at enhancing shareholder voting rights on the matter. The consultation seeks opinions on the following outline policy proposals: An annual binding vote on future remuneration policy Making the vote on future […]
Read MoreSince we published data on the number of executive directors in the FTSE 100 sitting on remuneration committees of other FTSE 100 companies, a common question we received was … what if you look beyond the FTSE 100? So we have re-run the numbers, looking at the FTSE All-Share (i.e. FTSE 100, FTSE 250 […]
Read MoreShareholders of JD Sports Fashion plc will note a massive 66% salary increase awarded to the executive chairman (from £423k to £700k) when considering the company’s remuneration report. Additionally, the remuneration committee is seeking shareholder approval for the chairman’s proposed cash-based long-term incentive award with a face value of £3.5m. The vesting conditions are based […]
Read MoreThe 2009 update to the ABI Guidelines on Executive Remuneration will be a disappointment to many investors. The amended guidelines fail to deal with some of the key structural deficiencies in executive pay practice and guidance – a contributory factor to the downturn – although the ABI has inserted 53 words to emphasis the need […]
Read MoreAs 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 nickel producer and explorer, Western Areas, saw its remuneration report defeated at its AGM on 6 November, as Australia’s stormy AGM season continues.The voting saw 52.5% vote against with a further 2.3% in abstentions. Four other remuneration-related resolutions were withdrawn in light of overwhelming opposition (by more than 2 to 1) from those voting […]
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’. […]
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