Government announces amendments to executive pay laws
The Government will be introducing amendments to the Corporations Act 2001 in the Spring Parliamentary sittings in an attempt to provide further certainty around aspects of the new executive pay reforms.
The amendments will clarify the ability of the chair to vote undirected proxies in the non-binding vote where the shareholder provides their explicit consent for the chair to exercise the proxy.
The Government's executive pay laws were passed by the Parliament in June after an inquiry and report by the Productivity Commission and extensive consultation with businesses and shareholders.
Central to the package of reforms, the bulk of which came into effect on 1 July, is an aim to improve accountability and transparency around the setting of remuneration and giving shareholders a greater say over the pay of executives.
This includes a new 'two-strikes' rule that gives shareholders the opportunity to vote to spill a board after a remuneration report receives 'no' votes of 25 per cent or more at two consecutive annual general meetings.
The Australian Securities and Investments Commission recently issued an information sheet outlining the various options available to companies.