GuerdonNews® Volume 7 Number 5

June 2011

Dear [FIRSTNAME],

Welcome to the June 2011 issue of GuerdonNews®

In this issue we:

•Provide an update for the 2 strikes law on executive pay.

•Summarise the Corporations and Markets Advisory Committee (CAMAC) report on simplifying incentive remuneration and remuneration disclosure, and its implications

• Suggest you hurry if you want to comment on the regulations pursuant to the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011.

• Note that the NSW government will amend a raft of laws that assumed directors were guilty unless proved innocent.

• Note some of the concerns global bank regulators have that are relevant to Australian banker remuneration practice

We conclude with the latest on executive and director remuneration disclosure updates available on the GuerdonData® on-line database and references to Guerdon Associates in the news media.

Australian 2 strikes law on executive pay – an update

The Bill was introduced into Parliament on 23 February 2011.

The Bill passed the House of Representatives on 12 May 2011. Various members of the Federal Opposition gave speeches that were generally supportive of the Bill.

CAMAC reports on simplifying remuneration and disclosure

On 25 May, the Corporations and Markets Advisory Committee (CAMAC) released its report on simplifying incentive remuneration and remuneration disclosure.

In a nutshell, CAMAC recommends some refining amendments to the corporations legislation, (principally section 300A and regulation 2M.3.03) but concludes that 'now is not the time' to make major changes given the pending two strikes rule.

What is an executive remuneration hedge, and when is it illegal?

The government has inadvertently come up with a convincing argument against its black letter law approach to regulate the governance of executive remuneration.

Treasury has released an “Explanatory Commentary” seeking feedback and comments on the regulations to be made pursuant to the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011.

Less “guilty until proved innocent” director laws – welcome amendments

The NSW government has introduced legislation to implement new model OH&S laws.

The new Work Health and Safety Bill 2011 implements the provisions of model occupational health and safety legislation are to be implemented by the Commonwealth and all State and Territory jurisdictions.

Banker pay – regulators conclude that banks have not got their pay in the right place yet

As we reported in October, global bank regulators had been getting a clearer picture on banker pay, and they did not like what they were seeing, despite improvements.

Since then, they have revisited their analysis and conclusions, after making sure they received feedback from all the stakeholders.

Latest GuerdonData® Updates

Updates to GuerdonData® include disclosures from the following 7 companies:

Austar United Communications Limited, Carsales.Com.Au Ltd, McMillan Shakespeare Limited, Rea Group Ltd, Seven West Media Limited, Southern Cross Media Group Limited, TPG Telecom Limited

Executive and director remuneration data from all ASX 300 companies on GuerdonData® is available to any subscriber. Visit our website for more information on GuerdonData®.

Assess how easily you can find out director and executive pay information by viewing our 6 minute demo. Click on the “More Info” button below.

Guerdon Associates in the news

“Reality check for executive pay reports”, Patrick Durkin, Australian Financial Review, 26 May 2011, p. 1 and p. 6

Disclaimer

The information, analysis and opinion in this e-mail and attachments are intended to be for informational purposes only. Analyses are based on information taken from public documents or private surveys, and we do not represent to its accuracy. Guerdon Associates assumes no liability for the use or interpretation of information contained herein. This publication is provided 'as is' without warranty of any kind, either expressed or implied, including, but not limited to, the implied warranties of marketability, fitness for a particular purpose, or non-infringement of third party rights.

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  Copyright © 2011 Guerdon Associates

ISSN 1834-8300

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