Shining the Light on CEO Pay Practices – 2018 AEX Proxy Review

In preparation for this year’s proxy season, CGLytics is releasing its annual AEX proxy review, providing key takeaways from 2018 and setting out what will be topping agendas in 2019. Learning from key issues last season, as presented in this report, ensures corporations will be fully prepared to engage with investors confidently.

SHINING THE LIGHT ON CEO PAY PRACTICES:
2018 AEX Proxy Review

In preparation for this year’s proxy season, CGLytics is releasing its annual AEX proxy review, providing key takeaways from 2018 and setting out what will be topping agendas in 2019. Learning from key issues last season, as presented in this report, ensures corporations will be fully prepared to engage with investors confidently.

2018 PROXY SEASON HIGHLIGHTS

Last season saw some notable highlights given it was the first year that AEX companies had to comply with the revised Dutch Corporate Governance Code 2016* (the Code). The Code requires companies to detail how they will “create long-term value for all stakeholders”. The amendments pushed companies to reveal information about their internal culture and prompted them to provide greater clarity on how their strategies would result in long-term value creation for all stakeholder groups.

Disclosure of CEO-to-average employee pay ratios became mandatory as a result of the amended Code, and more Dutch listed companies included this in their 2017 annual report. The pay ratios varied widely last year and showed that a uniform methodology is needed in order to calculate pay ratios of executives to employees fairly, given companies’ presence in multiple geographic locations.

Nine of the 25 AEX companies submitted remuneration reports containing proposals to be voted on. Of the nine, five companies had over 15% vote against the proposals and three of these faced more than a quarter in dissenting votes.

Of the past years’ proposals to amend executive and supervisory directors’ remuneration, the majority encountered some criticism and a portion were withdrawn prior to the AGM. Those proposals not withdrawn encountered substantial shareholder dissent.

The study performed by CGLytics shows that 44% of the 25 AEX companies are considered misaligned between pay and performance over a one-year basis. On a three year basis, this was reduced to 38%.

Download the report to find out more.

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Understanding ESG & Annual Incentive Plan

Understanding ESG & Annual Incentive Plan ESG refers to a series of environmental, social and governance criteria taken into consideration by the funds during the investing process. Investing in ESG funds allows shareholders to support companies in transition, that wish to act and develop in a more sustainable and responsible manner. In practice, many indicators … Continue reading “Understanding ESG & Annual Incentive Plan”

Pay for Performance: The Largest Institutional Investors’ View

Pay for Performance: The Largest Institutional Investors’ View   Executive compensation has been one of the trickiest issues within the corporate governance space as of late. Across the board, there seems to be no end in sight to finding the perfect compensation package or philosophy for corporate executives. In this article, we will discuss the … Continue reading “Pay for Performance: The Largest Institutional Investors’ View”

How to design your peer group for compensation benchmarking

How to design your peer group for compensation benchmarking   Given the scrutiny on executive compensation in recent years, it is critical to make sure that your company’s executive pay reflects its performance and aligns with the market. Therefore, it is essential for companies to have an appropriate peer group for performance benchmarking, compensation program … Continue reading "How to design your peer group for compensation benchmarking"

2017-2018 S&P 500 Review: Increasing Boardroom Diversity

The CGLytics report, Increasing Boardroom Diversity – 2017-2018 S&P 500 Review, describes the current boardroom composition of S&P 500 companies through comparative data captured between 2017 and 2018, evaluating the progress made and the likelihood of achieving greater diversity in the coming years.

2017-2018 S&P 500 Review: Increasing Boardroom Diversity

Pressure is continuing to build for S&P 500 companies to step up the pace in their board refreshment initiatives in order to catch up with their global peers.

The CGLytics report, Increasing Boardroom Diversity – 2017-2018 S&P 500 Review, describes the current boardroom composition of S&P 500 companies through comparative data captured between 2017 and 2018, evaluating the progress made and the likelihood of achieving greater diversity in the coming years. The report addresses diversity by gender and age – comparing the degree of diversity seen in accordance to sector. The report also reflects on current problems with “overboarding” and how to ensure directors have the availability to serve responsibly.

5 Key Takeaways:

Boards got bigger, with average number of members rising to 11 (from 10 in 2017)

One-third of new appointments were women

All but one company absent a female director in 2017 corrected this in 2018

The average age of all boards increased to 63.5 years old

Data reveals certain companies benefited from adding younger directors to their board

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Understanding ESG & Annual Incentive Plan

Understanding ESG & Annual Incentive Plan ESG refers to a series of environmental, social and governance criteria taken into consideration by the funds during the investing process. Investing in ESG funds allows shareholders to support companies in transition, that wish to act and develop in a more sustainable and responsible manner. In practice, many indicators … Continue reading “Understanding ESG & Annual Incentive Plan”

Pay for Performance: The Largest Institutional Investors’ View

Pay for Performance: The Largest Institutional Investors’ View   Executive compensation has been one of the trickiest issues within the corporate governance space as of late. Across the board, there seems to be no end in sight to finding the perfect compensation package or philosophy for corporate executives. In this article, we will discuss the … Continue reading “Pay for Performance: The Largest Institutional Investors’ View”

How to design your peer group for compensation benchmarking

How to design your peer group for compensation benchmarking   Given the scrutiny on executive compensation in recent years, it is critical to make sure that your company’s executive pay reflects its performance and aligns with the market. Therefore, it is essential for companies to have an appropriate peer group for performance benchmarking, compensation program … Continue reading "How to design your peer group for compensation benchmarking"

Shaping up the Scandinavian Governance Landscape

Download the Shaping up the Scandinavian Governance Landscape guide to ensure you know the latest changes and regulations.

Shaping up the Scandinavian Governance Landscape

Corporate governance in Europe has evolved with the introduction of various regulations to shape up the landscape.

In 2007 The Shareholders’ Rights Directive was introduced as a means of strengthening company boards, increasing disclosures and information flow, as well as encouraging shareholders’ oversight. Further notable changes to improve the Scandinavian corporate governance landscape are currently in play.

Download the Shaping up the Scandinavian Governance Landscape guide to ensure you know the latest changes and regulations.

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Understanding ESG & Annual Incentive Plan

Understanding ESG & Annual Incentive Plan ESG refers to a series of environmental, social and governance criteria taken into consideration by the funds during the investing process. Investing in ESG funds allows shareholders to support companies in transition, that wish to act and develop in a more sustainable and responsible manner. In practice, many indicators … Continue reading “Understanding ESG & Annual Incentive Plan”

Pay for Performance: The Largest Institutional Investors’ View

Pay for Performance: The Largest Institutional Investors’ View   Executive compensation has been one of the trickiest issues within the corporate governance space as of late. Across the board, there seems to be no end in sight to finding the perfect compensation package or philosophy for corporate executives. In this article, we will discuss the … Continue reading “Pay for Performance: The Largest Institutional Investors’ View”

How to design your peer group for compensation benchmarking

How to design your peer group for compensation benchmarking   Given the scrutiny on executive compensation in recent years, it is critical to make sure that your company’s executive pay reflects its performance and aligns with the market. Therefore, it is essential for companies to have an appropriate peer group for performance benchmarking, compensation program … Continue reading "How to design your peer group for compensation benchmarking"

Review of FTSE 100 2018 Proxy Season – Getting ready for next proxy season

The report provides boards with key insights and takeaways from the 2018 proxy season, in order to aid preparation and ensure companies are adequately prepared to engage.

Getting Ready for the Next Proxy Season: 2018 FTSE 100 Proxy Review

In preparation for the 2019 proxy season, CGLytics has released its third annual FTSE 100 Proxy Season report. The report provides boards with key insights and takeaways from the 2018 proxy season, in order to aid preparation and ensure companies are adequately prepared to engage.

Key Takeaways:

The 2018 proxy season saw a higher dissent from shareholders on director re-elections than previous years. This sends a strong message to directors that they will be held directly accountable for their individual actions.

The report highlights an increasing focus from investors on key governance issues such as disclosure quality, director election, board effectiveness, CEO pay and Environmental Social Governance (ESG) practices.

Once again CEO pay continued to be a key theme with shareholders concerned with pay equity, transparency, executive pay levels, and pay for performance. In particular, pay for performance is a main area of concern for investors, and the CGLytics study shows that almost a third of the FTSE 100 companies have significant misalignment between pay and performance over a one and three year period.

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Understanding ESG & Annual Incentive Plan

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Pay for Performance: The Largest Institutional Investors’ View

Pay for Performance: The Largest Institutional Investors’ View   Executive compensation has been one of the trickiest issues within the corporate governance space as of late. Across the board, there seems to be no end in sight to finding the perfect compensation package or philosophy for corporate executives. In this article, we will discuss the … Continue reading “Pay for Performance: The Largest Institutional Investors’ View”

How to design your peer group for compensation benchmarking

How to design your peer group for compensation benchmarking   Given the scrutiny on executive compensation in recent years, it is critical to make sure that your company’s executive pay reflects its performance and aligns with the market. Therefore, it is essential for companies to have an appropriate peer group for performance benchmarking, compensation program … Continue reading "How to design your peer group for compensation benchmarking"

Lessons Learned: An insight into Europe’s 50 largest cap companies’ engagement & compensation practice

As companies and institutional investors have started preparations for the upcoming proxy season, a number of key points can be drawn from last year’s season.

Lessons Learned:

An insight into Europe’s 50 largest cap companies’ engagement & compensation practice

As companies and institutional investors have started preparations for the upcoming proxy season, a number of key points can be drawn from last year’s season.

DOWNLOAD THE REPORT

Latest Industry News, Views & Information

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Understanding ESG & Annual Incentive Plan

Understanding ESG & Annual Incentive Plan ESG refers to a series of environmental, social and governance criteria taken into consideration by the funds during the investing process. Investing in ESG funds allows shareholders to support companies in transition, that wish to act and develop in a more sustainable and responsible manner. In practice, many indicators … Continue reading “Understanding ESG & Annual Incentive Plan”

Pay for Performance: The Largest Institutional Investors’ View

Pay for Performance: The Largest Institutional Investors’ View   Executive compensation has been one of the trickiest issues within the corporate governance space as of late. Across the board, there seems to be no end in sight to finding the perfect compensation package or philosophy for corporate executives. In this article, we will discuss the … Continue reading “Pay for Performance: The Largest Institutional Investors’ View”

How to design your peer group for compensation benchmarking

How to design your peer group for compensation benchmarking   Given the scrutiny on executive compensation in recent years, it is critical to make sure that your company’s executive pay reflects its performance and aligns with the market. Therefore, it is essential for companies to have an appropriate peer group for performance benchmarking, compensation program … Continue reading "How to design your peer group for compensation benchmarking"

Mind the Gap: CEO Remuneration and the Scandinavian Corporate Governance Landscape

The corporate governance landscape has been changing and executive remuneration has been, and continues to be, a topical issue engaging the attention of investors, corporations, politicians, the media and society. Scandinavian corporations are not exempted from this phenomenon.

Mind the Gap: CEO Remuneration and the Scandinavian Corporate Governance Landscape

The corporate governance landscape has been changing and executive remuneration has been, and continues to be, a topical issue engaging the attention of investors, corporations, politicians, the media and society. Scandinavian corporations are not exempted from this phenomenon.

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Understanding ESG & Annual Incentive Plan

Understanding ESG & Annual Incentive Plan ESG refers to a series of environmental, social and governance criteria taken into consideration by the funds during the investing process. Investing in ESG funds allows shareholders to support companies in transition, that wish to act and develop in a more sustainable and responsible manner. In practice, many indicators … Continue reading “Understanding ESG & Annual Incentive Plan”

Pay for Performance: The Largest Institutional Investors’ View

Pay for Performance: The Largest Institutional Investors’ View   Executive compensation has been one of the trickiest issues within the corporate governance space as of late. Across the board, there seems to be no end in sight to finding the perfect compensation package or philosophy for corporate executives. In this article, we will discuss the … Continue reading “Pay for Performance: The Largest Institutional Investors’ View”

How to design your peer group for compensation benchmarking

How to design your peer group for compensation benchmarking   Given the scrutiny on executive compensation in recent years, it is critical to make sure that your company’s executive pay reflects its performance and aligns with the market. Therefore, it is essential for companies to have an appropriate peer group for performance benchmarking, compensation program … Continue reading "How to design your peer group for compensation benchmarking"

CEO Shareholding Guidelines: How Europe is catching up

The general overview of SHG in some of the large European countries have shown that majority of the markets do not have clear guidelines as to what the minimum shareholding of Executives should be.

CEO Shareholding Guidelines: How Europe is catching up

The general overview of SHG in some of the large European countries have shown that majority of the markets do not have clear guidelines as to what the minimum shareholding of Executives should be.

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Understanding ESG & Annual Incentive Plan

Understanding ESG & Annual Incentive Plan ESG refers to a series of environmental, social and governance criteria taken into consideration by the funds during the investing process. Investing in ESG funds allows shareholders to support companies in transition, that wish to act and develop in a more sustainable and responsible manner. In practice, many indicators … Continue reading “Understanding ESG & Annual Incentive Plan”

Pay for Performance: The Largest Institutional Investors’ View

Pay for Performance: The Largest Institutional Investors’ View   Executive compensation has been one of the trickiest issues within the corporate governance space as of late. Across the board, there seems to be no end in sight to finding the perfect compensation package or philosophy for corporate executives. In this article, we will discuss the … Continue reading “Pay for Performance: The Largest Institutional Investors’ View”

How to design your peer group for compensation benchmarking

How to design your peer group for compensation benchmarking   Given the scrutiny on executive compensation in recent years, it is critical to make sure that your company’s executive pay reflects its performance and aligns with the market. Therefore, it is essential for companies to have an appropriate peer group for performance benchmarking, compensation program … Continue reading "How to design your peer group for compensation benchmarking"

Japan’s Corporate Governance Landscape: The Case of Toshiba Corporation

The multibillion dollar company has a history spanning back over two centuries; however, recently it has been in the “hot seat” for being entangled in a variety of scandals ranging from improper accounting to bankrupt powerhouses.

Japan’s Corporate Governance Landscape: The Case of Toshiba Corporation

The multibillion dollar company has a history spanning back over two centuries; however, recently it has been in the “hot seat” for being entangled in a variety of scandals ranging from improper accounting to bankrupt powerhouses.

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Understanding ESG & Annual Incentive Plan

Understanding ESG & Annual Incentive Plan ESG refers to a series of environmental, social and governance criteria taken into consideration by the funds during the investing process. Investing in ESG funds allows shareholders to support companies in transition, that wish to act and develop in a more sustainable and responsible manner. In practice, many indicators … Continue reading “Understanding ESG & Annual Incentive Plan”

Pay for Performance: The Largest Institutional Investors’ View

Pay for Performance: The Largest Institutional Investors’ View   Executive compensation has been one of the trickiest issues within the corporate governance space as of late. Across the board, there seems to be no end in sight to finding the perfect compensation package or philosophy for corporate executives. In this article, we will discuss the … Continue reading “Pay for Performance: The Largest Institutional Investors’ View”

How to design your peer group for compensation benchmarking

How to design your peer group for compensation benchmarking   Given the scrutiny on executive compensation in recent years, it is critical to make sure that your company’s executive pay reflects its performance and aligns with the market. Therefore, it is essential for companies to have an appropriate peer group for performance benchmarking, compensation program … Continue reading "How to design your peer group for compensation benchmarking"

FTSE 100 Pay for Performance Landscape: When the Proxy season dust has settled

As the proxy season dust has settled, DirectorInsight is releasing its 4th consecutive report on the pay of the CEO’s of UK’s largest listed companies.

FTSE 100 Pay for Performance Landscape: When the Proxy season dust has settled

As the proxy season dust has settled, DirectorInsight is releasing its 4th consecutive report on the pay of the CEO’s of UK’s largest listed companies.

DOWNLOAD THE REPORT

Latest Industry News, Views & Information

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Understanding ESG & Annual Incentive Plan

Understanding ESG & Annual Incentive Plan ESG refers to a series of environmental, social and governance criteria taken into consideration by the funds during the investing process. Investing in ESG funds allows shareholders to support companies in transition, that wish to act and develop in a more sustainable and responsible manner. In practice, many indicators … Continue reading “Understanding ESG & Annual Incentive Plan”

Pay for Performance: The Largest Institutional Investors’ View

Pay for Performance: The Largest Institutional Investors’ View   Executive compensation has been one of the trickiest issues within the corporate governance space as of late. Across the board, there seems to be no end in sight to finding the perfect compensation package or philosophy for corporate executives. In this article, we will discuss the … Continue reading “Pay for Performance: The Largest Institutional Investors’ View”

How to design your peer group for compensation benchmarking

How to design your peer group for compensation benchmarking   Given the scrutiny on executive compensation in recent years, it is critical to make sure that your company’s executive pay reflects its performance and aligns with the market. Therefore, it is essential for companies to have an appropriate peer group for performance benchmarking, compensation program … Continue reading "How to design your peer group for compensation benchmarking"

‘Pas-for-Performance INDEX’ Maakt Beloningspraktijken AEX-Fondsen Inzichtelijk

Persbericht: DirectorInsight lanceert vandaag de eerste ‘Pay-for-Performance Index’. Op basis van nauwkeurige analyse is inzichtelijk gemaakt hoe de beloning van de CEO’s van de 25 Nederlandse AEX-fondsen zich verhoudt tot de prestaties van die bedrijven.

‘Pas-for-Performance INDEX’ Maakt Beloningspraktijken AEX-Fondsen Inzichtelijk

Persbericht: DirectorInsight lanceert vandaag de eerste ‘Pay-for-Performance Index’. Op basis van nauwkeurige analyse is inzichtelijk gemaakt hoe de beloning van de CEO’s van de 25 Nederlandse AEX-fondsen zich verhoudt tot de prestaties van die bedrijven.

DOWNLOAD THE REPORT

Latest Industry News, Views & Information

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Understanding ESG & Annual Incentive Plan

Understanding ESG & Annual Incentive Plan ESG refers to a series of environmental, social and governance criteria taken into consideration by the funds during the investing process. Investing in ESG funds allows shareholders to support companies in transition, that wish to act and develop in a more sustainable and responsible manner. In practice, many indicators … Continue reading “Understanding ESG & Annual Incentive Plan”

Pay for Performance: The Largest Institutional Investors’ View

Pay for Performance: The Largest Institutional Investors’ View   Executive compensation has been one of the trickiest issues within the corporate governance space as of late. Across the board, there seems to be no end in sight to finding the perfect compensation package or philosophy for corporate executives. In this article, we will discuss the … Continue reading “Pay for Performance: The Largest Institutional Investors’ View”

How to design your peer group for compensation benchmarking

How to design your peer group for compensation benchmarking   Given the scrutiny on executive compensation in recent years, it is critical to make sure that your company’s executive pay reflects its performance and aligns with the market. Therefore, it is essential for companies to have an appropriate peer group for performance benchmarking, compensation program … Continue reading "How to design your peer group for compensation benchmarking"