Over the last 12 months Australian Boards have grappled with several issues, such as a weakening global economic outlook, the tightening of regulation and their associated business impacts. The effects have been felt particularly strongly in the Financial Services industry, where higher-than-ever levels of investor oversight on company performance and a continued pressure to retain good executive talent have put additional strain on Boards.
While regulators are proactively advocating material changes to executive remuneration programs in Australia to bring in elements of culture and conscientious corporate behaviour in incentive plans, attempts to do so have been met with unabashed criticism from investors and proxy advisors, leaving Boards and Remuneration Committees to resolve an almost unsolvable conundrum.
The ongoing global health crisis and associated business impact of COVID-19 spread only adds further to the uncertainty faced by Australian Boards.
In an environment mired with uncertainty, it is more important than ever before for organisations to employ the right talent on Boards and remunerate them appropriately to enable effective corporate governance and decision-making. Our Non-Executive Director (NED) Remuneration report is a deep-dive into all facets of NED pay and examines issues such as gender representation and workload.