Linking executive pay to performance tops investor wishlist for 2026
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The news: Investors want boards of top ASX-listed companies to improve across a range of measures in 2026, but they particularly want to see steps towards better aligning executive pay with realised performance.
The numbers: The Australian Shareholders' Association's retail investor sentiment survey found almost 38% of surveyed investors sought a tighter link between remuneration and actual outcomes as a priority from boards of ASX 200 companies.
A further 19% wanted better capital allocation discipline, across dividends, buybacks, acquisitions and dilution. Almost 18% put board effectiveness, in general, as a top priority for 2026 including chair leadership, capability and engagement. About 17% of investors sought stronger accountability from boards.
The sentiment among investors is muted for the market in 2026, with more than three quarters saying they feel “about the same” in terms of investing over the next 12 months as they did over 2025.
The survey found that the common themes investors are anticipating to focus on for 2026 include the broader economic outlook, including rates and inflation, and global and US political and market risks. Boards, governance and disclosure quality, sector themes across resources, commodities and energy, and AI and tech cycle risk, also featured highly in responses.
What they said: "Retail investors are not asking for perfection, they are asking for discipline: pay for realised performance and capital allocation decisions that protect and build shareholder value," Australian Shareholders' Association CEO Rachel Waterhouse said.
The source: Australian Shareholders' Association media release
