A critical aspect of attracting key talent and maintaining a stable top executive team is the remuneration package offered. The remuneration package needs to be market competitive yet structured to support company performance goals.
Market competitiveness of top executive remuneration can be assured by undertaking regular benchmarking of current practice against relevant market practice. Such benchmarking needs to be against comparable companies and equivalent roles. In this regard consideration needs to be given to company industry sector and company size factors such as market capitalisation, turnover, profit, assets and employees.
The comparator group also needs to reflect appropriate relativities to the broader market so as to ensure that the resultant data is reasonable as required by the Corporations Act.
To be confident in the data it needs to be transparent, detailed on an individual basis and analysed by reference to various remuneration measures including total remuneration packages (Base + STI + LTI + retention).
Policy ranges need to be set having regard to your company’s remuneration strategy which will influence the mix of:
Top Executive Remuneration Reviews
