The Corporations and Markets Advisory Committee (CAMAC) is conducting an inquiry into simplification of reporting requirements and incentive components of executive remuneration.
The BCA has made a submission to this inquiry.
In our submission we note that CAMAC has an important role to play in ensuring that public debate and potential policy changes are based on a thorough understanding of:
- the facts about contemporary public company practice in Australia
- respect for the proper role and responsibility of directors to determine appropriate remuneration structures, and
- objective assessments of the potential costs and adverse implications of adopting specific regulatory responses.
The BCA maintains a view that policy responses regarding executive remuneration must pay proper regard to the central role that boards play in determining executive remuneration within individual companies.
Our submission highlights that that effective, company-specific approaches need to be supported, not discouraged or constrained by new regulations. The aim should be to promote:
- Reporting requirements that are principles-based, allow flexibility for boards to set remuneration arrangements to suit each company’s circumstances, and provide clear and concise information for shareholders; and
- Remuneration incentive packages that take into account the specific circumstances and objectives of individual companies.
Read or download the BCA Submission to the Corporation and Markets Advisory Committee Inquiry into Aspects of Executive Remuneration using the link below.
Read the BCA’s submission to the Productivity Commission Discussion Draft on Executive Remuneration in Australia and to its Inquiry on Director and Executive Remuneration in Australia.