‘Two-strike’ pay package passes parliament, awaits coalition support
A push by the Greens to cap the salaries of the nation’s executives is threatening to derail the Federal Government’s ‘two-strike’ test pay package reform.
The reform, which recently passed the Federal lower house, will need support from either the Coalition or the Greens, which is increasingly unlikely after Bob Brown announced his parties proposed $1.8 million executive pay cap.
The reform was one of the key recommendations of the Productivity Commission following its review of the corporate remuneration system.
In its current form, the ‘two-strikes’ reform will ensure that if 25% of voting investors vote against executive pay packages for two consecutive years, a further vote requiring majority would be held to spill the entire board.
However, if the Greens refuse to support the reform, the Federal Government may be obliged to conform to the opposition’s proposed alterations to the bill, which would see the ‘no’ vote being increased to %50.