Updated Policy Guidelines for Australia & New Zealand
In advance of the 2017/2018 proxy season, the CGI Glass Lewis team has updated the Guidelines for the Australian and New Zealand markets.
While our voting policies remain largely unchanged, we aimed to increase the transparency around our assessment of the director skills and criteria we apply. In terms of gender diversity, we are focusing on initiatives to increase the number of female executives and gender ratios across the board, executive KMP and total workforce for the past three years for all ASX 300 companies. And with the rising number of companies looking to adopt new and unique remuneration structures, we will also continue to look for additional cogent disclosure regarding the appropriateness of those structures, performance measures (if any) chosen under executive remuneration incentive plans, and mechanisms to prevent excessive vesting in years of poor shareholder experience.
The main revision for the New Zealand Guidelines relates to the release of the new NZX Corporate Governance Code (“the new Code”), to replace the existing Best Practice Code on October 1, 2017. The new Code has focused on four areas which have gained increased importance for investors in recent years: (1) Diversity, (2) Director and executive remuneration reporting requirements, (3) Environmental, social and governance reporting, and (4) Health and safety risk management. In terms of executive remuneration, the new Code will require the New Zealand listed entities to disclose the remuneration arrangements in place for the CEO in its annual report, including disclosure of short and long-term incentives and the performance criteria used to determine performance based payments.
Access Glass Lewis Policy Guidelines:
Glass Lewis’ Policy Guidelines are available to download from our website.
Clients can also access guidelines via Viewpoint, using the “Guidelines” link in the navigation at the bottom of any page; or via glasslewis.net, from the Guidelines section. Or simply email your dedicated Client Services contact to let us know which markets you’re interested in, and we’ll be happy to send them along!
© 2018 Glass, Lewis & Co., and/or its affiliates. All Rights Reserved.
This blog is for informational purposes only and is updated periodically to keep Glass Lewis' clients and other interested parties informed of current corporate governance developments and regulatory trends. The information contained herein should not be construed as legal or investment advice. Glass Lewis analyzes issues it believes may be of interest to its subscribers and makes recommendations as to how Glass Lewis believes institutional shareholders should approach such issues. While Glass Lewis may mention certain companies in its blog postings, Glass Lewis never comments on the investment merits of the securities issued by the subject companies. Therefore, none of the information posted through this blog should be construed as a recommendation to invest in, purchase, or sell any securities or other property. All recommendations stated herein must be construed solely as statements of opinion, and not as statements of fact, and may be revised based on additional information or any other reason at any time.
The information contained in each blog posting is based on publicly available information. While Glass Lewis exercises reasonable care to ensure that all information included in this blog is accurate and is obtained from sources believed to be reliable, no representations or warranties express or implied, are made as to the accuracy or completeness of any information included herein. In addition, Glass Lewis shall not be liable for any losses or damages arising from or in connection with the information contained herein or the use or inability to use any such information.
Glass Lewis expects readers of its blog possess sufficient experience and knowledge to make their own decisions entirely independent of any information contained in Glass Lewis’ blog postings. Subscribers are ultimately and solely responsible for making their own decisions. This blog is intended to serve as a complementary source of information and analysis for subscribers in making their own decisions and therefore should not be relied on by subscribers as the sole determinant in making decisions.