Is This The End To Golden Handshakes?

Executive Termination Payments and Shareholder Approval

In response to what has been described as "community outrage" the Government has recently announced its intention to introduce significant amendments to the Corporations Act 2001 (Cth), which will significantly limit the level of termination payments that can be made to key executives without shareholder approval. This is likely to have a material impact upon the structure of executive termination payments and executive remuneration more generally.

The government has announced that significant amendments have been announced to the Corporations Act 2001 (Act) to limit the level of termination payments that can be made to senior executives without shareholder approval. Under section 200 of the Act, as currently drafted, shareholder approval is required if termination payments paid to people who hold a "board or managerial office" are in excess of the amount calculated in accordance with a formula set out in the