GEO INSIGHTS

The article highlights the impact of executive compensation incentive on corporate innovation capability by categorizing it into short and long term incentives. Evidence from agro-based companies in China.

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The article discusses the results of the Singapore Governance and Transparency Index (SGTI) for 2023, which evaluates listed companies' disclosures and governance practices in Singapore. The average score for companies has improved from 70.6 to 74.8 compared to the previous year, indicating enhanced transparency and governance. The SGTI assesses companies in five areas: board responsibilities, shareholder rights, stakeholder engagement, accountability & audit, and disclosure & transparency. The highest average score is in the shareholder rights category, with an 87 percent average, showing a 4 percentage point increase. The lowest average score is for board responsibilities at 64 percent, although this is up from 60 percent in the previous year. Disclosure & transparency has also increased from 63 percent to 67 percent. Notably, there has been a significant rise in disclosure rates for indicators related to board practices and ESG (Environmental, Social, and Governance) practices. The SGTI's findings suggest that companies are disclosing more information about areas like board independence, competence, and selection of directors. ESG disclosure has also improved, with several indicators showing 8 to 10 percentage points of yearly improvement. The article mentions upcoming changes to further enhance the SGTI's scores. Singapore will implement new regulations regarding board independence and executive remuneration. SGX RegCo will enforce limitations on the tenure of independent directors and require companies to provide detailed breakdowns of CEO and certain director pay packages.

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The article discusses pay hikes for technology professionals in startups, particularly in the early-stage startup environment. It notes that techies in early-stage startups have received wage hikes in the range of 8 to 12 percent, while those in small startups with fewer than 40 tech employees have seen increases of 15 to 20 percent for entry- and mid-level roles. The report also highlights that while some tech professionals have received significant hikes of 20 to 25 percent, this has been the case for only about 10 percent of the workforce. The article mentions the increasing importance of equity compensation, particularly employee stock option plans (ESOPs), in startups. It notes that around 70 percent of companies have seen a positive shift in outlook towards ESOPs, and senior-level executives are more willing to accept ESOPs compared to entry- and mid-level employees.

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This article discusses the efforts of the Asian Utilities Engagement Programme (AUEP), led by the Asian Investor Group on Climate Change (AIGCC), to emphasize the connection between executive compensation and climate-related Key Performance Indicators (KPIs) in its second year. The AUEP engages with Asian utilities as focus companies, urging them to adopt governance frameworks for climate issues, establish decarbonization timelines, disclose climate information aligned with the Task Force on Climate-related Financial Disclosures (TCFD), address physical climate risks, and align lobbying activities with climate objectives. The article highlights that several focus companies are already incorporating climate considerations into pay calculations, including Japan's J-Power and Chub Electric, exploring sustainability KPIs for director pay, and Malaysia’s Tenaga Nasional, which has integrated them for senior management compensation. The program's engagement also extends to discussions with regulators across markets, and future expansion is on the agenda.

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The article discusses how few companies offer equity ownership to most employees, despite its potential benefits for engagement and wealth equality. It highlights the need for well-designed plans, policy support, and financial education to make this practice more widespread. Turning more stakeholders into capitalists can align with stakeholder capitalism principles.

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