Reports & research

Non-Executive Director Remuneration Report (Australia)

The landscape of executive remuneration is evolving under unprecedented regulatory pressures and investor scrutiny. The fallout from the banking Royal Commission, coupled with ongoing legislative changes, is necessitating major changes to executive remuneration practices in the Financial Services sector. The increasing complexity of corporate governance in financial institutions – typically the bellwether for the Australian market – is indicative of a broader trend for all Australian companies.  The role of Non-Executive Directors (NED) has become more multifaceted than ever before as Boards look to navigate organisations through this highly dynamic and demanding environment. Consequently, organisations find themselves contending for high quality NED talent in an intensely competitive marketplace. A key determinant of success in acquiring and retaining the right talent is market competitive remuneration. Without accurate market data, organisations run a real risk of coming up short on this front.

The talent pool for NEDs spans both listed and unlisted organisations. Although ASX-listed organisations disclose their NED fee arrangements, private organisations do not, and with their often markedly different fee structures, this can lead to an incomplete understanding of market remuneration for NEDs.

Responding to this gap, Aon is pleased to launch its Non-Executive Director Survey (Australia) 2019. This survey captures market trends for both listed and private organisations. Participants will receive a complimentary summary report, covering base Board fees for Chairs and Members, committee fee schedules, and high-level insights into NED remuneration policies including fee pools, average fee increases, minimum shareholding guidelines, and more.

With a combination of both listed and private organisation data, this survey aspires to be Australia’s largest and most comprehensive source of NED fee information.

Survey timeline

Aon will accept data submissions until 31st October 2019. The summary report will be published to participants by 29th November 2019.

 
Participant benefits

Participants are entitled to receiving a complimentary summary report which will capture Board and committee fee trends in Australia. Specifically, the summary report will inform participants of market trends on:

  • Composition of Boards
    • Number & type of committees;
    • Number of directors on the Board;
    • Number of directors in each committee;
  • Total fee pool for NEDs;
  • Scheduled non-executive director fee split by Chairman, Deputy Chairman and Member;
  • Scheduled committee fee split by Chairman and Members;
  • Number of Board meetings and committee meetings;
  • Shareholding guidelines;
  • Fee ratio of Chairman to Directors;
  • Gender representation and pay ratios.

 
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