Parliamentary secretary flags reforms to executive remuneration

Articles Written by Stephen Walmsley

In a speech to the Australasian Investor Relations Association Conference on 26 November 2010, Parliamentary Secretary to the Treasurer, David Bradbury indicated that he proposed "in the coming weeks" to release draft legislation to implement the reforms stemming from the Productivity Commission inquiry.

According to the speech, the draft legislation will include:

  • the controversial "two strikes" test in relation to remuneration report approvals (potentially forcing a board spill if remuneration reports are voted down twice);
  • increasing "transparency of the use of remuneration consultants";
  • simplifying remuneration report disclosures;
  • prohibiting hedging of executive remuneration;
  • a new proposal to "claw back" remuneration in the event of a material misstatement in a financial statement.
Important Disclaimer: The material contained in this article is comment of a general nature only and is not and nor is it intended to be advice on any specific professional matter. In that the effectiveness or accuracy of any professional advice depends upon the particular circumstances of each case, neither the firm nor any individual author accepts any responsibility whatsoever for any acts or omissions resulting from reliance upon the content of any articles. Before acting on the basis of any material contained in this publication, we recommend that you consult your professional adviser. Liability limited by a scheme approved under Professional Standards Legislation (Australia-wide except in Tasmania).

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