SHAREHOLDERS have welcomed proposed new powers to sack board members who approve excessive, multi-million dollar salaries, while supporting the rejection of a cap on executive pay.
The Productivity Commission's long-awaited draft report into executive salaries yesterday recommended a "two strikes" policy under which boards would face a spill if 25 per cent of shareholders reject an executive pay plan twice.
Corporate lawyers and directors warned the move would make it difficult for companies to attract quality board members and executives and open a Pandora's box of unintended consequences.
However, the Greens and unions said the report's rejection of a cap on executive pay did not go far enough in tackling the problem of excessive pay and "greed-fuelled risk-taking" that contributed to the financial crisis.
Releasing the draft report yesterday, Productivity Commission chair Gary Banks said some egregious cases of "reward for failure" highlighted the need for reform.
See full Article.
Posts
