Egan Associates

Non-Executive Directors

The elements of non-executive directors’ emoluments are required to be disclosed under the Corporations Act 2001 and the Australian Accounting Standards. Good corporate governance also requires proper disclosure. Boards need to ensure that shareholders are satisfied that non-executive director emoluments are both reasonable and based on sound independent advice.

Boards of directors need professional and independent advice on non-executive directors’ fees and retirement provisions. This advice should be based on market data, which is logically analysed and relevant to the organisation. Egan Associates has both the consulting experience and a robust, contemporary database of non-executive director remuneration to assist boards in these reviews.

Customised analysis reveals how companies of varying scale and profitability pay their non-executive directors, including retainer and committee fees, provide for equity participation, and design consultancy arrangements.

As boards encounter ever more complex issues, Egan Associates is able to offer additional advice in areas such as managing payments for extraordinary workloads arising from litigation, takeover activity, corporate restructure and/or major strategic reviews, as well as the departure of a CEO.

With many boards considering that reliance on a sole advisor is no longer appropriate; Egan Associates provides a valuable resource offering an independent viewpoint on reward issues, including an audit of existing practices.