Overhaul of reporting of CEO pay expected
Market watch top headlines
CANBERRA, Nov 26 AAP
November 26 2012, 07:18AM
The federal government is this week expected to release draft legislation to overhaul the statutory reporting of how much the country's CEOs are paid, forcing companies to disclose exactly how much chief executives take home.
The legislation would also require boards to ensure they have policies to claw back bonuses if financial accounts are materially misstated.
"It is about simplification and informing the community about how much executives are paid and making sure that is properly disclosed," parliamentary secretary to the Treasurer, Bernie Ripoll, told The Australian Financial Review.
"The remuneration reports need to better reflect what executives are really being paid."
The government wants remuneration reports to require the disclosure of take-home pay, which boards have argued provides a more accurate figure as it is not distorted by long-term incentives, which include shares and options executives might never receive.
Meanwhile, The Australian Financial Review's 14th annual survey of executive salaries reveals that for the first time in a decade none of the country's CEO's statutory reported pay exceeded $10 million.