Corporations Amendment

Improving Accountability on Director and Executive Remuneration

Executive Remuneration - Corporations Act Changes

On 20 June 2011 the Senate Passed the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011, which came into effect on 1 July.

The changes affect "Disclosing Entities" and include all listed companies and some others. The key areas of change are:

  • Introduction of the 2-Strikes test
  • Remuneration Consultants
  • Tightening voting rules at company meetings
  • Prohibiting the hedging of incentive remuneration
  • Removal of disclosure obligations of the Top 5 paid executives
  • No vacancy rule

For full details on the changes listed above and to find out more about how they affect your organisation, please download our 'Advice to clients' document.