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.