Trends in executive remuneration

Global pressures reshaping executive remuneration for Australian Boards

Boards and Remuneration Committees are being challenged to rethink traditional pay frameworks in an environment where global talent competition is fierce and top executive talent is becoming harder to attract and retain.

The question is no longer just how much to pay, but how far Boards are willing to flex remuneration practices to secure the leadership needed to deliver on strategy. At the same time, scrutiny from investors, regulators and the public is intensifying, particularly around pay for performance, gender equity and Board discretion. As Remuneration Committees set and carry out their agendas, they must ensure their remuneration framework is agile, transparent and aligned with both organisational performance and market realities.

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Executive Remuneration: Balancing performance, perception and purpose

Boards and Remuneration Committees are being challenged to rethink traditional pay frameworks.

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Five front-of-mind issues informing remuneration committee discussions

Competing for talent

Australian companies are evolving remuneration strategies to stay competitive with North American and private equity pay practices, including offering one-off awards and outperformance incentives.
Total shareholder return (TSR) in a volatile results season

Boards are reconsidering how TSR is measured to better reflect market reactions post-results, with some adjusting peer groups for greater alignment.
Gender equity

From 2026, large employers must set and work towards gender equality targets, with remuneration-related goals including pay gap reduction and equitable policies.
Pay compliance

Recent legal rulings reinforce that salaried staff must be paid above award rates each pay period and that employers must maintain detailed records to avoid liability.
Transparent disclosure of Board discretion

Boards are increasingly expected to clearly disclose the monetary impact of discretionary pay decisions, apply consequences in a timely manner, and foster a learning culture following non-financial risk events.