2019 Executive Reward Report: Summary of findings

We have recently released our Executive Reward Report for 2019. This is our tenth annual survey and includes remuneration data from 149 predominantly private companies on more than 2,000 executive roles. Roles covered include four CEO/Subsidiary CEO positions, 33 executive direct report roles (e.g. CFO, GM IT) and 36 third tier positions.

In summary:

• The fixed annual remuneration (FAR) median increase for same incumbents (people in the same job as last year) was 2.9% (slightly down on the 2018 median movement of 3.0%).
• The incidence of executive direct reports receiving a short term incentive pay-out has decreased, with 65% receiving an STI pay out (compared to 2018 levels of 77%).
• The median STI payment received across the database was $52,400.
• Overall, median total remuneration (FAR plus variable pay) moved 4.1%, slightly down on last year’s movement of 4.7%.
• Twenty three percent (23%) of same incumbents received no increase or had a negative movement in total remuneration year on year.
• Forecast movement in FAR for the 2018 - 2019 period was conservative, at 2.5% for CEOs, and 2.6% for executives.
• Share rights plans (or variations) were once again the most prevalent LTI structure (52%), with share loan and bonus schemes the next most common (24%).
• Employee share scheme law changes were enacted and will impact on grants made after 28 September 2018 (and potentially before). These changes are expected to materially influence LTI practices going forward. 

Please contact one of our team for more information on the survey findings and trends in CEO and executive reward.

The full report is only available for purchase by participating companies. You can submit data at any point in the year to purchase the next survey.