Executive Remuneration - Government Introduces Bill

The Parliamentary Secretary to the Treasurer, the Hon David Bradbury MP, introduced legislation to give shareholders new powers over the pay of company directors and executives and strengthen the transparency of Australia's executive remuneration framework. The Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011 implements the Government's response to the recommendations made by the Productivity Commission in its recent inquiry into Australia's remuneration framework.

The key measures to improve the remuneration framework include:

• Strengthening the non-binding vote on remuneration, by giving shareholders the opportunity to remove the directors if the company's remuneration report has received a 'no' vote of 25 per cent or more at two consecutive annual general meetings