Retention arrangements and why you should be wary

Kym Sheehan

The Executive Remuneration Reporter

I'm not a fan of retention arrangements because ultimately they won't stand in the way of a superior outside offer to the executive. This is not only because of the practice of companies offering sign-on awards or 'Golden Hellos' to new executives to make up for any remuneration forfeited on leaving the former role, but also because, well, people are people. There is probably no better illustration of why retention arrangements won't ensure retention than Transpacific Industries who today announced the resignation with immediate effect of the Cleanaway MD. A retention arrangement was entered into with this executive in August 2015. Transpacific Industries has a lot of turnover at the level above this. As I wrote back in July 2015 (VIEW LINK) Transpacific Industries' new CEO Vik Bansal is the fourth CEO in five years. Transpacific Industries' 2015 AGM is scheduled for 30 October 2015.


Kym Sheehan
Kym Sheehan
The Executive Remuneration Reporter

With a background in human resources, executive search and corporate law, Kym Sheehan brings unique perspectives on corporate governance and meeting resolutions to her work for The Executive Remuneration Reporter. The Executive Remuneration...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment