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| In the wake of the GFC, the Labor Government's proposed reforms in the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill (Bill) has now been passed by both houses of parliament. The government's stated intention is to make boards more accountable to shareholders.
Key changes came into effect on 1 July 2011. These have a significant impact on the remuneration of directors and key management personnel of listed companies and on AGMs for FY11 and beyond.
Key changes include:
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the introduction of the “two strike” rule in relation to the remuneration report
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restrictions on the ability of key management personnel to vote on the remuneration report
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new rules that apply when appointing a remuneration consultant
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restrictions on hedging equity-based remuneration.
This legislation is intended to increase transparency and accountability in executive remuneration matters. Please click here to view a summary of the legislative changes which will effect executive remuneration for reporting entities and listed companies, or here to view a checklist that will uncover just how ready your Board is for this new legislation. At DibbsBarker, we will also be holding a series of events on this topic. Please find details of the first one which will be held in Brisbane on 15 September, 2011 here.
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