The Post Hayne Playbook

The Post Hayne Playbook

The Post Hayne Playbook for Executive Remuneration

Download the Report

The Post Hayne Playbook for Executive Remuneration

Download the Report

The new rules you need to know

The clock is ticking for banks, superannuation funds and insurance providers to ensure their remuneration, accountability and reporting frameworks comply with the new rules - from the Chair of the Board of Directors through to front-line staff. In a new and uncertain remuneration environment, clarity is everything.

Succeeding in a post-Hayne environment comes down to four key areas. Download our Post-Hayne Playbook for unique market insights and key plays on how to survive in today's remuneration environment.

"Failings of organisational culture, governance arrangements and remuneration systems lie at the heart of much of the misconduct examined in this commission."

Kenneth Hayne
Royal Commissioner into Misconduct in the Banking and Financial Services Industry

As we saw in the royal commission, when the pursuit of profit is prioritised almost at the expense of everything else, organisations risk facing terrible outcomes.
Many organisations are still in the dark on what the implications are for them, and consequently are not taking non-financial risk seriously enough, to their detriment. Just one misstep has the power to damage an organisation's reputation that has been established over decades.
It's absolutely critical that non-financial risks and non-financial performance are at the top of every organisation's 'to do' list.
The buck stops with the board when organisations behave badly, with claims of ignorance no longer a defence.

Where businesses could once look to financial performance as the principal measure of success, equal attention must now be given to non-financial factors such as misconduct, compliance, reputation and data breaches.

Just as a poor remuneration structure can corrupt culture, a considered remuneration framework rewarding appropriate non-financial and long-term performance can foster a healthy one.

Where boards once only concerned themselves with remuneration arrangements for key senior staff, regulatory changes will see this extend to all facets of the business - from the CEO down to front-line staff.

Rewarding staff based on metrics such as sales volume, accelerators and the use of financial performance gateways to unlock payments increases the risk of people doing the wrong thing.

As we saw in the royal commission, when the pursuit of profit is prioritised almost at the expense of everything else, organisations risk facing terrible outcomes.
Many organisations are still in the dark on what the implications are for them, and consequently are not taking non-financial risk seriously enough, to their detriment. Just one misstep has the power to damage an organisation's reputation that has been established over decades.
It's absolutely critical that non-financial risks and non-financial performance are at the top of every organisation's 'to do' list.
The buck stops with the board when organisations behave badly, with claims of ignorance no longer a defence.

Get your Mercer Health Check now

Drawing on our expertise, Mercer partners with organisations to review and strengthen critical organisational structures such as remuneration, accountability, governance and effectiveness frameworks.

While addressing these four areas will provide a solid foundation for future success, a post-Hayne "health check" by Mercer's specialist Rewards and Board Effectiveness Teams allows for a more holistic and detailed response, tailored to your unique circumstances.