Glass Lewis Pay for Performance Scores – Test Breakdown – Australia
Overall Score
Performance against each test in our scorecard results in points being added to the overall alignment score for your company. An overall score and concern level are generated based on the final result.
- Severe Concern: 0 to 20 points
- High Concern: 21 to 40 points
- Medium Concern: 41 to 60 points
- Low Concern: 61 to 80 points
- Negligible Concern: 81 to 100 points
About the Tests
CEO STI Payout vs. TSR
- STI payout in percentage of maximum opportunity
- Relative TSR compared to Glass Lewis peers (broad-based and bespoke)
- Measurement period: Most recent financial year
CEO LTI Payout vs. TSR
- LTI payout in percentage of maximum opportunity
- Relative TSR compared to Glass Lewis peers (broad-based and bespoke)
- Measurement period: Performance period of most recent LTI that vested
CEO STI Payouts vs. TSR (Track Record)
- STI payout in percentage of maximum opportunity
- Relative TSR compared to Glass Lewis peers (broad-based and bespoke)
- Measurement period: Five-year weighted average (three years minimum)
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CEO LTI Payouts vs. TSR (Track Record)
- LTI payout in percentage of maximum opportunity
- Relative TSR compared to Glass Lewis peers (broad-based and bespoke)
- Measurement period: Five-year weighted average (three years minimum)
Qualitative Test
- Any one-off awards granted?
- Any upward discretion exercised?
- Is fixed pay greater than variable pay?
- Are incentives unlimited?
- Does the Company pay more cash than equity?
