Our Services
Comprehensive and Professional Help
Theorem Advisory prides itself on its high quality services which consist of the following:
- Assessment of your current executive and Board remuneration arrangements relative to market practice.
- Advice on the design, measurement and operation of short-term and long- term incentive awards.
- Identifying for you appropriate incentive plan performance measures
- Developing remuneration arrangements for new executive hires and executive terminations.
- Reviewing and developing remuneration arrangements through corporate transactions.
- Assessing remuneration governance and disclosure practices related to investor expectations and proxy adviser voting policies and practices.
Executive Remuneration
Important questions to ask yourself like:
How much do I need to Pay?
- How is remuneration pitched relative to market benchmarks?
- How are comparator companies and jobs chosen for the benchmarking?
- How strong is the link between incentive payment funding and individual pay outcomes to ‘performance’?
- Are incentives capped?
- Are there gateways/ modifiers?
How do I Pay?
- Is there a clearly articulated remuneration philosophy?
- What is the pay mix- fixed and variable? Short and Long term incentives? Equity and cash?
- How does the design, pay mix and delivery of remuneration give ‘shareholder alignment’?
- Are the performance goals and performance periods established at levels which encourage the right level of risk taking?
- How are individual performances and pay outcomes differentiated?
How do I Comply?
- Are disclosures complete, clear, understandable and consistent?
- Are the executive remuneration arrangements and employment terms consistent with the relevant legislation/regulation and the guidelines issued by the ASX, investor groups and Proxy Advisors? If not, why not
- How does the remuneration committee guarantee the independence of its decision making?
- How are termination arrangements set up? Will shareholder approval be needed?
What are the key building blocks for an executive remuneration strategy?
- Remuneration arrangements need to include:
- Support both quantitative and qualitative corporate goals.
- Be structured and organised so they attract, retain and motivate the best talent.
- Align management with shareholders.
- Be as simple, transparent and practical as possible.
- Follow best practice.
- A significant proportion of packages should be part of performance- related pay.
- Performance pay should have both short and long-term focus.
- Performance targets should have a clear line of sight for strategy and preferably would reward both absolute and relative performance.
- There should be no possibility of payment for company/executive failure.
