A couple of developments from Australia. First, the
Government is proposing that directors' termination payments exceeding one year's base salary will require shareholder approval - see
here. Second, and more broadly, the Government has
asked the
Productivity Commission to undertake a review of the regulation of directors' remuneration. The Commission has been asked to consider the following matters (its full terms of reference are available
here):
- Trends in director and executive remuneration in Australia and internationally
- The effectiveness of the existing framework for the oversight, accountability and transparency of director and executive remuneration practices
- The role of institutional and retail shareholders in the development, setting, reporting and consideration of remuneration practices
- Any mechanisms that would better align the interests of boards and executives with those of shareholders and the wider community
- The effectiveness of the international responses to remuneration issues arising from the global financial crisis
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