In this episode of the Guerdon Associates podcast, we unpack executive remuneration policies, including STI/LTI vesting trends, target-setting challenges during inflation, equity valuation methods and dividend inclusion impacts across ASX tiers.

Key Takeaways

• Historical vesting data provides board directors with baseline context for incentive evaluation.

• Four structural alternatives enable target-setting during high inflation without penalising management.

• Dividend adjustments ensure accurate like-for-like compensation benchmarking.

• Monte Carlo simulations value market-based equity grants through millions of stock return scenarios.

• Dividend integration in executive plans varies by incentive type and decreases from ASX 20 to ASX 100.

Original Guerdon Associates Articles

· Executive incentives that include dividends with their STI and LTI share rights

· Is an executive’s STI or LTI more likely to vest?

· Performance targets in a high inflation environment

· LTI grants: Face Value or Fair Value?

· Explaining the Monte Carlo Simulation methodology for valuing equity

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Disclaimer: This podcast is generated by third-party AI based on Guerdon Associates research and articles. The AI draws on Large Language Models (LLMs) for AI generated commentary utilising material prepared by Guerdon Associates. While Guerdon Associates humans curate the podcasts, the firm makes no warrant regarding the AI's interpretation, opinions, or accuracy. This audio does not constitute professional advice. To read our original, human-authored research and articles on which the podcast is based, or to learn about our remuneration advisory services, please visit guerdonassociates.com.

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