Reforms to Director and Executive Remuneration

Introduction

On 23 February 2011, the Government tabled the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011 (Bill).

The Bill is the means by which the Government is implementing most of the recommendations of the Productivity Commission relating to executive remuneration and builds on recent amendments to the Corporations Act relating to termination payments.

The Bill contemplates that the new legislation, if enacted, will take effect from 1 July 2011; however, it is not presently clear whether the legislative timetable of the Government will accommodate this ambition. The Bill was debated in the House of Representatives in the last week of the Autumn session; however, the earliest it may be passed is when Parliament resumes for the Winter session on 10 May 2011. The Opposition appears set to support the Bill, notwithstanding their concerns about "over-regulation", but has indicated they will be seeking to make