Shareholders ultimately want to ensure that executives are remunerated in line with industry and index standards. However, in 2020, research findings suggest a worrying trend of organisations relatively overpaying their CEOs. According to the study, 99 ASX 300 companies had an aligned relative positioning of remuneration and performance over three years, while 103 companies have overpaid their CEOs and 80 companies have paid their CEOs conservatively*. Diligent can help your board gain vital insights to formulate the right remuneration plans that are aligned with business strategy, shareholder expectations and as well as current market expectations.
*More About Pay than About Performance: Trends to Watch for during the 2021 ASX Proxy Season Report