The updated advice will guide Australian corporations on how ACSI will be assessing public company directors’ behaviours and performance, ACSI stated.
The guidelines will “provide expanded context and commentary on investor expectations of board practices, executive pay structures and conduct during capital raisings”, ACSI said.
The guidelines will also underpin ACSI’s proxy-voting recommendations to its 38 Australian member-funds, which collectively manage over $350 billion in assets on behalf of 8 million Australians, according to ACSI.
“To enhance understanding and accessibility, the guidelines now articulate the issues considered by ACSI when making voting recommendations on director elections, remuneration reports, the ratification of capital raisings and board spill proposals,” the group said in a statement.
“The ACSI Governance Guidelines continue to give a clear insight into what behaviours and disclosures superannuation funds expect from the companies in which they invest,” ACSI chief executive Ann Byrne said.
“As long-term investors, ACSI’s member funds recognise that governance of Australian listed companies is a critical factor in determining the impact of long-term risks on super fund investment performance and ultimately the returns of retirees,” she added.
“ACSI has, however, been encouraged by the growing emphasis displayed by many companies on the level of engagement with their shareholders over material governance issues, and their responsiveness to shareholder concerns.”
The revised guidelines include commentary around issues considered when directors seek election, and re-election, to listed company boards. Executive pay also remains firmly on its radar, ACSI said.
