Comparing Your STI Design to the Prevailing Market

Issue: Getting a read on Executive Remuneration

The CEO of an ASX Listed Company is looking at the Senior Executive Remuneration for the year ahead, before engaging with the Board.

A key focus is the prevailing STI practices, and the Head of Remuneration is given project responsibility for a review of the market.

Before AscentData Direct the organisation would have used one of the larger consulting firms to complete this work for them.

Brief: To understand how the companies current STI compares to the market

In particular, the CEO wants to know how well the STI metrics, which are aligned with their business plan compare to prevailing market practice for Senior Executive within their ASX Comparator Peer Group. Their particular focus is on the practice of including ESG metrics.

The Remuneration Team can start working on this project immediately, as their AscentData Direct subscription means they have in-depth STI metrics and policy information at hand.

Insight: Where metrics meets policy

As detailed STI Metrics analysis is completed, some secondary benefits also emerged. STI Policy analysis is already available using the Platform STI analysis tool. Even greater detail for both STI Metrics and STI Policy are available via an Excel download. The bookmarked 1,000+ Annual Reports make it simple to gather further information which supports each company's plan design.

Approach: The value is in the detail STI data

The ASX companies most relevant for the Company are present in their AscentData Direct company list. This is where they start their search:

  • Initial data – is collated on screen from key ASX Company Peers and a small group of requested UK and US companies
  • Hybrid STI & LTI plans – are already highlighted in the data which makes the record selection simpler
  • This initial data – is analysed and, if required, at the click of a button, further information can be referenced in each Company’s Annual Reports
  • Once final – the data set is exported in a pre-formatted Excel download to enable further analysis and preparation for inclusion in the report
  • An STI plan comparison – is presented in a simplified format to the CEO with commentary on prevailing market practice

Outcome: Presenting the insights as a series of user-friendly conclusions

Creating a simplified slide deck, with detailed data tables, is well received by the CEO.

  • The depth of project knowledge and confidence gained by using a detailed database and running all the underlying analysis in-house becomes clear to the team
  • The prevailing STI plans of the relevant ASX Australian and Overseas Peers are highlighted
  • Specific records and metrics are outlined in a visual manner for the CEO
  • This makes it much easier to show that the planned annual programme for the organisation is aligned with the prevailing STI plans in the local ASX market
Case Studies