Managing increased D...

As most directors will know, MAS recently issued the revised Code of Corporate Governance and this includes important changes to the remuneration sections of the Code. A summary is set out on the next page. As a result of CGC changes, many companies will be increasing their disclosure of the...

SAY-ON-PAY; Is it re...

Executive compensation systems have been identified as one of the primary causes of the global financial crisis. Amongst the remedies being proposed is to give shareholders more control over compensation through a vote on how and how much executives and directors will be remunerated or,...

Performance Measures

A quick and simple way to think about performance measures is to understand where a business is in its “life-cycle”. New businesses usually have to be driven by revenue growth if they are to survive and prosper. Mature businesses, have to shepherd their capital and their shareholders...

The Code of Corporat...

After more than a year of deliberations, the Corporate Governance Council has finalized its recommended changes to the Code. To allow time for companies to adapt, the changes will come into effect for the financial year commencing on or after 1 July 2012. The Code provides a wide range of...

Managing Pay For Per...

The revised Code contains two new provisions that will likely change the way in which performance based pay is managed in many companies. Relevant extracts from the Code are set out below: The guidance is clear. Boards should have measures for assessing the amount of performance pay and then...

Calibrating Bonus Pa...

Many companies, particularly newly listed ones, use profit as the only factor in deciding bonuses. The bonus plans usually allocate a percentage of profit to the executives once a target has been met. Some plans are more complex with different percentages for different amounts of profit....