Board remuneration committees, to various degrees, have been following government plans to impose additional executive remuneration reporting requirements ever since CAMAC’s proposals to “simplify” remuneration reports were published in May 2011 (see HERE). Many Australian companies have amended their disclosures in anticipation of the changes. Others have prepared their 30 June financial year disclosures based on the draft legislation released in December (see HERE), on the fair assumption that legislation that was to have effect for financial years beginning on or after 1 July this year would be finalised and passed by now.
However, an Australian Treasury source has confirmed that the proposed disclosure requirements will not be enacted before the election, as priority is being given to Budget measures and bills currently before Parliament.
Given the issues with the proposed laws we have no misgivings (see HERE).
Any legislation after the election will be up to the incoming government. With the polls suggesting a Coalition win, we note that their record to date has been to generally support the current government’s measures on executive pay (albeit with sensible modifications), but there is no indication that they would initiate similar measures.
Remuneration committee members may therefore wish to:
· Reflect on additional detail in the current draft remuneration report, with a view to simplification
· Re-visit any plans to amend policy in anticipation of changes
· Relax a bit, and focus on other, perhaps more material matters before the board.
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