The BCA welcomes the appointment of the Productivity Commission to conduct an inquiry into executive remuneration, BCA Chief Executive Katie Lahey said.

Ms Lahey said the Productivity Commission is the appropriate forum for examining a government response to the remuneration of executives and directors.

“The Productivity Commission is independent of government, sufficiently resourced to undertake research and considered analysis in this area and can conduct detailed public consultations,” Ms Lahey said.

“While the sorts of excesses and inappropriate payments to executives that have occurred overseas have not been such an issue here in Australia, this is an issue we must ensure is appropriately managed going forward.

“It is important that we ensure Australia has the right structures for linking executive pay to company performance, and that pay practices are transparent.”