Executive Remuneration

Public inquiry

This inquiry has concluded. The Commission's final report was provided to the Australian Government on 19 December 2009. The Government publicly released the report on 4 January 2010.

The Productivity Commission was asked to undertake a public inquiry into the regulatory framework around remuneration of directors and executives of companies regulated under the Corporations Act.

Specifically, the Commission was requested to consider:

• trends in director and executive remuneration in Australia and internationally
• the effectiveness of the existing framework for the oversight, accountability and transparency of director and executive remuneration practices
• the role of institutional and retail shareholders in the development, setting, reporting and consideration of remuneration practices
• any mechanisms that would better align the interests of boards and executives with those of shareholders and the wider community
• the effectiveness of the international responses to remuneration issues arising from the global financial crisis.

In undertaking the inquiry, the Commission liaised with the Australia's Future Tax System Review and the Australian Prudential Regulation Authority.

The Commission has made recommendations on how the existing framework governing remuneration practices in Australia could be improved.

Further information

• Government response - Linked from a joint media release from the Treasurer, Assistant Treasurer and Minister for Financial Services, Superannuation and Corporate Law/Minister for Human Serivces (external link)
• Correspondence and attached submission from Senator Doug Cameron
• Opinion piece (PDF - 16 Kb)
• Correspondence (PDF - 41 Kb)
• Discussion draft - Press conference opening remarks
• Executive pay: economic issues from the Commission's report - Chairman's speech
• The Productivity Commission's Executive Pay Inquiry: An update on the issues - Chairman's speech
• Productivity Commission and Allan Fels to examine executive remuneration - Joint media release from the Treasurer and Assistant Treasurer (external link)
• Action on golden handshakes - Joint media release from the Treasurer and Minister for Superannuation and Corporate Law (external link)
• About the public inquiry process