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2021 Analysis on Australian Executive Remuneration

Trends in Australian Company Long Term Incentives

Deloitte has identified key trends in long-term incentives as well as emerging challenges that Australian companies face in designing incentive plans for key management personnel.

Deloitte performs market trend analysis on executive-level remuneration for ASX listed companies each year. In this analysis, companies within the ASX 100 and a sample group of fast-growing companies were selected for the purpose of providing market-based insights into emerging and ongoing trends in long term incentives for the period between 2015 and 2021.

Our main analysis focused on the approaches to compensation structures, performance hurdle consideration, total shareholder return benchmarking and valuations.

  • 79% of LTI plans use relative total shareholder returns (RTSR) as a hurdle.
  • RTSR comparator groups are shifting away from broad market indices towards global industry specific groups.

In addition, we have analysed emerging market trends in the way Australian companies pay their employees and retain talent. Our analysis included research into Australia’s start-up boom and the increasing adoption of share-based remuneration policies.

  • Australia’s start-up boom has resulted in a rapidly growing number of businesses adopting share-based remuneration policies.
  • A greater than 100% increase in the number of ASX IPOs in 2021 has resulted in significant wealth creation for employees participating in share-based payments.

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