Treasury has released draft regulations laying out how Superannuation organisations are expected to implement remuneration disclosure requirements in legislation passed late last year. The Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 was passed in November and to comes into effect 1 July 2013.
This legislation stated that registrable superannuation entities must disclose on their website the details of the remuneration of:
(i) each executive officer in relation to the RSE licensee if the RSE licensee is a body corporate; and
(ii) each trustee of the registrable superannuation entity if the RSE licensee is a group of individual trustees.
All payments, benefits and compensation paid have to be disclosed, whether provided by the RSE licensee or by a related body corporate of the RSE licensee.
The intention was that regulations were expected to be modelled on existing requirements for listed companies laid out in section 300A of the Corporations Act.
Now the draft regulations have been released. The information RSEs must disclose includes:
- The person’s name, position start, position end and position change details
- Short term benefits divided into elements such as salary, non monetary benefits, and other benefits
- Post employment benefits including superannuation
- Long term benefits
- Termination benefits
- Golden Handshakes
- Equity-based payments
- For variable pay, the terms and conditions of any grants including grant date, type of compensation granted, number of instruments granted, year in which the grant vests and expires, and related service or performance criteria. For options, the exercise price and date.
- Percentage of the bonus or grant paid, vested or forfeited during the year.
- Estimates of the maximum and minimum total value of bonus or grant.
- The details of any alterations of terms and conditions of grants, including date and effect of change.
- If money for Director services is not paid to the Director, the amount paid for the services and the organisation or entity to which the money is paid.
Additionally, RSEs must make publicly available:
- Rules for the appointment, nomination and removal of trustees or trustee Directors
- The names, qualification and summary of Director or trustee experience
- Record of attendance at Board meetings for the past 10 years or length of tenure.