The “complex role” HR plays when setting board pay and putting forward remuneration proposals is coming into the spotlight, an expert says. Across the ASX 300, the average CEO total realised pay (TRP) decreased by 10.5% from 2019 to 2020, according to research by the Diligent Institute.
But among the 47 companies in the ASX 300 that initiated COVID-19 pay cuts for CEOs, the average CEO TRP increased by 11%, according to the report. Of those companies, 65% promised to cut CEO base salary, 31% committed to a cut in both CEO base salary and short-term incentives (STIs), and 4% proposed cuts to only STIs.
Strikes on the rise
There’s increased attention on executive pay in light of the pandemic, with investors expecting a more conservative approach to executive compensation in 2020, and this will continue through the upcoming proxy season as well, says Diligent Institute’s head of international research, Edna Frimpong.
As the 2021 proxy season approaches, she says it’s worth noting that AGM strikes are on the rise – the number of ASX 300-listed companies that received strikes against their remuneration reports jumped from 24 in 2019 to 32 in 2020.
Read the full article on hrdaily.com.au.