Insignia Financial has enacted a remuneration review after finding its pay was lower than market peers, upping the maximum short-term bonus available for CEO Scott Hartley.
Hartley, who joined the firm in March 2024, has been instrumental in leading the firm through the bidding process between private equity firms Bain Capital and CC Capital to acquire 100 per cent of the business. After multiple bids and an extended due diligence period, CC Capital was announced as the successful offer, and the two parties signed a scheme of implementation deed in July.
With this bidding process now having concluded, Insignia said it has approved a variation in the structure of Hartley’s remuneration to allow him to receive a larger bonus.
This will also factor in his work on the five-year 2030 Strategy, which is seeking to make Insignia a leading wealth manager in Australia across asset management, financial advice, master trust, and wrap platform. It will also utilise the benefits of scale and drive efficiency to achieve around $200 million per annum net cost savings by the financial year 2030.
Over the past 12 months, shares in Insignia have risen 78.3 per cent versus returns of 8 per cent by the ASX 200.
While there is no change to his total fixed remuneration of $1.3 million, there will be an increase in his short-term variable reward to allow him to receive up to a maximum of 120 per cent of his total remuneration, up from 74.4 per cent. The at-target proportion will increase from 59.5 per cent to 80 per cent of total fixed remuneration.
His long-term variable fixed reward will vest at the end of year three, while deferred ones will vest over years four, five, and six to meet regulatory deferral requirements.
In an ASX statement, Insignia said: “In making these changes, the board recognises Hartley’s strong performance since taking on this role and the importance of his ongoing leadership through the execution of the 2030 strategy and the proposed transaction with CC Capital.
“This more dynamic LTVR structure aligns opportunity to in-year performance as well as 3-year performance metrics.
“These changes reflect Insignia Financial’s commitment to aligning executive reward with performance and long-term shareholder value creation. The emphasis on deferral and equity ensures compliance with prudential deferral requirements and market best practice.”
The remuneration review for its executives had previously been flagged in its FY25 annual results, where it stated the firm had undergone a review of the executive remuneration framework after research found its remuneration was below market peers. This came about in response to business changes, sustainable business interests, and alignment with shareholder interests.
“The review also considered insights from both formal and informal benchmarking against comparable financial services organisations. Results indicated that executive remuneration was generally below the market median, largely due to lower variable remuneration levels,” it said.
“In response, the revised approach places greater emphasis on long-term incentives and aims to strengthen alignment between executive reward and shareholder outcomes with a focus on share price performance.”
As well as his work at Insignia, Hartley was also announced as a director of the Financial Services Council (FSC), his second time in the role after a stint between 2021 and 2023.
