It appears the wheel has turned. It seems like it was only yesterday that there was a great deal of governance effort to reign in non-executive director retirement provisions. Now the ASX Governance Council’s draft guidelines for non-executive director pay no longer require disclosure of retirement benefits (presumably as this duplicates Corporations Act and AASB requirements). The reference to retirement benefits for directors has been removed because, as a result of the current recommendation, the “practice” (presumably retirement benefits in addition to or in lieu of superannuation), according to the Council, rarely occurs.
However, the revised guidelines additionally require that non-executive director retirement benefits only consist of superannuation. In its broadest sense, this requirement still provides boards plenty of leeway in retirement provision that many governance groups may not accept.
For related articles in this ASX Governance Council’s principles amendments series, see:
Major Changes to ASX Good Governance Principles
ASX Governance Council Requires Evaluation Of Directors And Senior Executives
ASX Governance Council Removes Remuneration Disclosure Recommendation
ASX Governance Council Recommendation Requires That Many Companies Change Their Remuneration Committee
ASX Governance Council Changes Catch Hedging Of Executive Options
ASX Council Unsure On Senior Executive Equity Pay
ASX Governance Council And ASX Not Sure Where To Go On Director Equity