While legislation is being debated in Parliament, many of the key issues raised by commentators and practitioners alike have been ignored by the Government.
Egan Associates made its own submission to Treasury on the proposed legislation which will give shareholders a “two strikes” opportunity to vote down remuneration and oust a board at will.
If you are a woman and aspire to a director role, it certainly pays to get onto the board of a Top 100 ASX Company, because this is where the opportunities for women are the greatest.
The ASX has foreshadowed two amendments to the Listing Rules coming into effect in 2011.
Shareholders have long complained about lack of transparency and company officers know that compliance does not equal communication and accounting practices do not deliver clarity.
When the Productivity Commission made a Draft Recommendation (Number 15) that entire Boards could be required to stand for re-election when specified proportions of shareholders had voted against the Remuneration Report in two successive years, it became clear that enough attention had not been paid by the market over the years as to how many, and which, shareholders vote at meetings.
It is important that the work of the many ethical and concerned remuneration consultants is not ignored as a result of uninformed comment.
From time to time, there is discussion of the function and effectiveness of disclosure in regard to executive reward.
The present crisis in financial and capital markets highlights issues which have been raised in the Australian, US, UK and European parliaments regarding the independence of external advisors and their level of engagement in the provision of professional services to corporations.