GuerdonNews® Volume 7 Number 8

September 2011


Welcome to the September 2011 issue of GuerdonNews®

In this issue we:

• Welcome ASIC's offer of relief to companies that would otherwise suffer from the government's "two strikes law" drafting errors
• Interpret key points from the ACSI updated corporate governance guidelines
• Question whether penalties for breaching "the two strikes" law changes are appropriate and balanced
• Give you the good news and the less good news from ASX Corporate Governance Council’s principles review
• Summarise key top 100 company CEO pay survey results released by ACSI

We conclude with the latest on executive and director remuneration disclosure updates available on the GuerdonData® on-line database.

AGM remuneration report resolution problems acknowledged by ASIC

On 10 August 2011, the Australian Securities and Investments Commission (ASIC) acknowledged that the new two strikes law has problems, and is offering relief until the government can amend the law.

In a press release issued on 11 August 2011, the government confirmed that it will be introducing amendments to the Corporations Act 2001 in the Spring Parliamentary sittings to fix these problems.

ACSI issues up-dated corporate governance guidelines

The Australian Council of Superannuation Investors (ACSI) represents industry superannuation funds that account for about 25% of the Australian market’s capitalisation.

In August it released its biennial revision of its governance guidelines for superannuation trustees to monitor listed Australian companies.

Unbalanced penalties?

Criticism from some commentators of the penalties or lack of them imposed on Centro non-executive directors raises the question whether penalties for breaching the raft of new two strikes laws are appropriate and balanced.

ASX Corporate Governance Council positive on principles review

On 15 July 2011, the Chairman of the ASX Corporate Governance Council released the results of the Council's 2011 review of its principles and recommendations.

There is good news and not so good news.

ACSI releases survey results on CEO pay

The Australian Council of Superannuation Investors released its annual top 100 company CEO survey results yesterday.

The release of these results is timely, and complements the Guerdon Associates review published every December.

Latest GuerdonData® Updates

Updates to GuerdonData® include disclosures from the following 61 companies:

Abacus Property Group ,Aditya Birla Minerals Limited,Alesco Corporation Limited,Asciano Group ,Aspen Group,ASX Limited,Atlas Iron Limited,Ausdrill Limited,Austal Limited,Australian Infrastructure Fund,Australian Pipeline Trust,Australian Worldwide Exploration Limited,Beach Petroleum Limited,Bluescope Steel Limited,Bradken Limited,Brockman Resources Limited ,Cardno Limited,Carnarvon Petroleum Limited,Carsales.Com.Au Ltd,Commonwealth Bank Of Australia,Csl Limited,CSR Limited,Customers Limited,Dexus Property Group,Downer EDi Limited,Flexigroup Limited ,Goodman Fielder Limited,Grange Resources Limited,Gwa Group Limited,Hastie Group Limited,Imf (Australia) Ltd,Infigen Energy,Insurance Australia Group Limited,JB Hi-Fi Limited,Kingsgate Consolidated Limited,Macarthur Coal Limited,Macmahon Holdings Limited,Medusa Mining Limited,Metcash Limited,Mineral Resources Limited,Mirvac Group,Oakton Limited ,Origin Energy Limited,Panoramic Resources Limited,Sedgman Limited,Seek Limited,SMS Management & Technology Limited,St Barbara Limited,Stockland,Suncorp-Metway Limited,Tattersall'S Limited,Telstra Corporation Limited,The Reject Shop Limited,Toll Holdings Limited,Transfield Services Limited,United Group Limited,Watpac Limited,WDS Limited,Wesfarmers Limited,WorleyParsons Limited,Wotif.Com Holdings 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

“Proxy adviser pool starts to run dry”, Ian McIlwraith, Sydney Morning Herald, 3 August 2011, p. 7 of Business Day

“Bungled pay laws rile critics”, Patrick Durkin, Australian Financial Review, 11 August 2011, p. 7

“Volatility sparks executive pay shake-up”, Dominic White, Australian Financial Review, 29 August 2011, p. 1 and p. 16


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