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AscentData Newsletter July 2020

AscentData Reports Market Highlights

While history does not provide us with the pathway through the pandemic, it does provide us with a firm basis on which decisions can be made. AscentData collects board and executive data for over 1000 ASX listed companies as they report through the year. The following are a few key outcomes of our analysis for companies reporting in the 12 months to 31 December 2019:

Board Fees

  • During 2019, 32 ASX100 companies reporting increases in fee policy for chairs with a median increase of 3.4%. 51 companies either had no increase or a decrease. For NEDs 38 companies reported an increase with a median of 4.3%.
  • For the ASX 300 (excluding the ASX100), the increases were slightly higher. Just over 40% of companies that disclosed board fee policy reported increases with a median of 5.0% for Chairs and 6.4% for NEDs.

Executive Remuneration

  • Our analysis of the same groups of companies shows that 46 same incumbent CEOs received an increase in Fixed Pay (Base + Super) in 2019. The median increase for those that received an increase was 5.2%.
  • Similarly, for the 96 same incumbents in the remainder of the ASX300 who received an increase, the median of the increase was 6.3%.

AscentData conducted a rolling update of data as companies report through the year. This week we are finalising the 31 March 2020 data. During August we start the major data collection period for companies with financial end dates of 30 June 2020.

Covid 19 Reactions by ASX200 Companies

The pandemic has changed the business landscape significantly in 2020. Starting late February and gathering momentum through March and April almost 40% of the ASX200 companies withdrew their earnings guidance. In addition, many announced reductions for board members, CEOs and other executives. The following summaries our findings:

  • 13% of companies announced reduction in Chair fees averaging 38%. These reductions ranged between taking no fees and 20%.
  • 14% of companies announced reductions in CEO remuneration averaging 35%. Again, these reductions were between 100% and 20%.
  • We identified 21 companies that provided the period of the reduction. For these the average was 3.8 months. 11 of these companies stated the period of the reduction was up to 30 June 2020.

This week the reporting season commences for companies with a 30 June 2020 financial year end. A lot will be revealed of the impact of the past 5 months on the actual performance of reporting companies. We will continue to bring you future updates.

AscentData Market Reports

In June we launched our new range of Market Reports. Are you looking for a cost-effective way to access reliable remuneration benchmarking and avoiding the significant cost of tailored reports? Our Market Reports are a cost-effective alternative available in a range of market capitalisation segments.

These reports include detailed board and C-suite remuneration information including actual remuneration paid, incentive policy, design and metrics, based on information reported by companies up to 31 December 2019.

The benchmark data is sourced from public company information and is full of tables and graphs – perfect to support your decisions and covers both board and C-suite roles.

These easily downloadable reports are available for immediate purchase and download from our website at: https://ascentdata.com.au/ascentdata-market-reports-2/, or call us on 1300 260 809.

AscentData Direct

If you have higher remuneration data needs and you are looking for a cost-effective and timely way to access ASX information, then consider subscribing to AscentData Direct. You can get direct access to our comprehensive Australian board and executive remuneration database, AscentData Direct. This subscription allows you to confidently benchmark your senior leadership team and board role, using our on-line tool and download data so you can do your own analysis. A few features:

  • Nominate your own comparator groups or select from a range of pre-established ASX Indices
  • Data progressively updated throughout the year as companies report
  • Multiple tools and downloads
  • Multi-currency capable to enable analysis across reporting practices

Find out more information on our website at: https://ascentdata.com.au/ascentdata-direct/ or call us on 1300 260 809 to arrange a demonstration.

Laurie Wood is the Managing Director of Ascent Data. We are an Australian remuneration company specialising in the analysis and reporting of board and executive remuneration. AscentData solutions feature a flexible range of products to meet your information needs for board and senior executive remuneration. If you would like to hear more from us, follow our LinkedIn company page here.