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2022 Analysis on Australian Executive Remuneration

Trends in Australian Long Term Incentives

Deloitte has analysed trends and shifts in long-term incentives within Australian remuneration.

Deloitte analyses the evolution of market trends and shifts within Australian executive remuneration each year. In the analysis, ASX 100 company Remuneration Reports are sampled to unlock data driven insights into the Australian remuneration space, stretching from 2015 to 2022.

Highlighted within the analysis are the varying performance metrics, remuneration structures and compositions, as well as remuneration designs.

  • 77% of LTI plans use relative total shareholder returns (RTSR) as a hurdle.
  • The LTI proportion of total remuneration is unchanged, disrupting the increasing trend previously observed.

Furthermore, the analysis shines a spotlight on the heightened scrutiny place upon Remuneration Reports from shareholders. Following such scrutiny, boards have faced a record number of ‘second-strikes’ and are redesigning remuneration packages to reflect company ESG objectives.

  • 3 second strikes have occurred in the ASX since the start of FY22.
  • 62% of ASX 100 company executive remuneration performance hurdles include ESG metrics.

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