The Federal Government has released an Exposure Draft of the Corporations Legislation Amendment (Remuneration and Other Measures) Bill (“Bill”) introducing new measures designed to enhance the disclosure of executive remuneration in Australia.
The Bill, which is still in draft form and subject to change before it goes before the Federal Parliament, proposes an array of additional reporting and procedural requirements designed to improve disclosure about executive salaries and termination payments. The Bill implements many of the recommendations made by the Corporations and Markets Advisory Committee (“CAMAC”) in its 2011 inquiry into executive remuneration in Australia.
Relevantly, the Bill proposes that listed companies will be required to include in their remuneration reports details of all retirement payments made to executives, rather than just those provided for in their employment contracts, as is currently the case. It is intended that these changes will expose discretionary payments, gratuitous bonuses or settlement payments made to settle disputes over the person’s termination.
The Bill is open for comment, and parties are invited to make submissions to the Federal Government by 15 March 2013.