The past year has seen the ongoing evolution, rather than revolution, of executive pay for listed companies in Australia.
There continues to be, in our view, a tendency for 'vanilla' approaches to executive remuneration designed not to raise the ire of proxy advisors and shareholders as the result of the two-strikes rule.
We hear from Non-Executive Directors that there is an unhealthy risk aversion amongst boards, created in part by regulation, lack of diverse thinking and public focus on those that stand out from the crowd.
The real insight however is not in the data, but to challenge whether following best practice (which is likely to really be prevailing practice) will achieve the desired results and engagement from executives and drive long term increases in shareholder value.
The first KPMG Executive Remuneration Insights report details the current executive remuneration practices and related topical issues in Australia and overseas to help Non-Executive Directors and management create a remuneration strategy that supports its unique business strategy.