As this year’s public company reporting season comes to a close, the following trends in executive remuneration across various industries stand out:
- Modest or nil increases in fixed remuneration for executives with some companies electing not to increase fixed remuneration for the third consecutive year;
- Increases in short term incentive deferral practices and/or other changes to STI structure;
- Significant changes to terms of long term incentives. For example, lengthening performance testing periods and mechanisms for rating performance for the purposes of initial LTI allocation or grant.
Unsurprisingly, organisations have also continued to review and monitor their remuneration structures, with several opting to decrease weighting towards STI and increase weighting of LTI.
[In our next Director Dashboard blog we’ll discuss more specific trends in executive remuneration in the superannuation industry.]