The Hon David Bradbury MP, Parliamentary Secretary to the Treasurer, has today welcomed the report of the Corporations and Markets Advisory Committee (CAMAC) on Australia's director and executive remuneration disclosure framework.
In May 2010, the Government asked CAMAC to review Australia's disclosure framework, with a view to reducing the complexity of remuneration reports and simplifying the underlying incentive components of remuneration packages.
CAMAC's report contains a range of recommendations that are intended to simplify remuneration reports and provide more relevant information to shareholders, while noting that boards are best placed to determine the particular remuneration arrangements that would promote the interests of the company and its shareholders.
"I am very mindful of the need to simplify remuneration reports. Their current length and complexity can make it difficult for shareholders to understand, and onerous on companies to prepare", Mr Bradbury said.
"It is vital that shareholders have all of the information they need to be able to hold company directors to account. That is why it is so important that the remuneration report is relevant and easy to understand", said Mr Bradbury.
CAMAC's inquiry forms part of the Government's broader commitment to improve Australia's remuneration framework. The Government is progressing reforms, currently before Parliament, to improve accountability on executive remuneration as recommended by the Productivity Commission. In 2009, the Government also acted to empower shareholders to reject excessive 'golden handshake' payments made to directors and executives.
The Government will closely examine CAMAC's recommendations and will respond in due course.
25 May 2011