In this episode of the Guerdon Associates podcast, we explore non-executive director tenure, board composition metrics, updated ACSI guidelines on AI, director remuneration trends, and revised proxy voting policies.

Key Takeaways

• Most ASX 300 non-executive directors step down within nine years of service to preserve their board independence and maximise company value.
• The ASX Corporate Governance Council abandoned its proposed 5th edition governance principles following widespread pushback against overly prescriptive regulations and expanded board diversity disclosure requirements.
• While ASX board remuneration, director shareholdings, and large-company independence continue to rise, gender diversity in top leadership positions remains stagnant and governance gaps persist in smaller firms.
• The 2026 12th edition of the ACSI Governance Guidelines introduces updated expectations for ASX-listed companies, focusing on AI governance, board succession planning, streamlined executive remuneration disclosure, and sustainability reporting.
• In FY2025, 45% of ASX100 companies increased board fees, delivering a median pay rise of roughly 4% for both chairs and non-executive directors.
• State Street and Vanguard’s updated 2026 proxy voting policies shift toward a performance-first approach by dialling back explicit ESG and DEI requirements while granting greater board autonomy.

Original Guerdon Associates Articles

• What proportion of NEDs resign before their independence is compromised?
• The Good News? ASX Corporate Governance Council’s Draft Principles And Recommendations Rejected
• Ownership Matters’ FY24 study on board composition, pay, and director shareholding
• Updated ACSI Governance Guidelines 2026
• Board Director Fee Changes
• State Street and Vanguard Voting Policies updated

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Disclaimer: This podcast is generated by third-party AI based on Guerdon Associates research and articles. The AI draws on Large Language Models (LLMs) for AI generated commentary utilising material prepared by Guerdon Associates. While Guerdon Associates humans curate the podcasts, the firm makes no warrant regarding the AI's interpretation, opinions, or accuracy. This audio does not constitute professional advice. To read our original, human-authored research and articles on which the podcast is based, or to learn about our remuneration advisory services, please visit guerdonassociates.com.

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