The Australian government’s draft “Deregulation Bill” did away with nonsensical disclosure requirements while adding an additional requirement on listed companies to report how remuneration is governed (see HERE).
As we noted in our review of the Bill, there was no attempt for a wholesale makeover of remuneration report disclosures. Reviews of disclosure requirements in the Productivity Commission executive pay enquiry and the CAMAC enquiry failed to achieve any general consensus on major change, despite thoughtful contributions from many parties, including Guerdon Associates (see, for example a joint submission HERE and CAMAC’s recommendations HERE)
Given this, Guerdon Associates’ submission on the Deregulation Bill supported cleaning up the Act by moving prescriptions on details to be disclosed to the Regulations, and making these consistent for grants of share rights and options. We supported disclosure of remuneration governance arrangements, given that it is now established practice, and a requirement of external stakeholders (like much of the contents of remuneration reports for larger companies).
See our submission HERE.© Guerdon Associates 2021 Back to all articles