Executive Remuneration in Australia

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• Executive Remuneration in Australia (PDF - 2676 Kb)

Download the report by chapters

• Preliminaries (PDF - 540 Kb)
  Cover, Copyright, Commissioner's letter, Terms of reference, Contents, Abbreviations and explanations
• Overview - including key points (PDF - 309 Kb)
• Recommendations and findings (PDF - 187 Kb)

Part A: Background and analytical framework

• Chapter 1 What is the inquiry about? (PDF - 251 Kb)
  1.1 Background to the inquiry
  1.2 The Commission's task
  1.3 The Commission's approach
  1.4 Conduct of the inquiry
  1.5 Report structure
• Chapter 2 The role and evolution of the public company (PDF - 296 Kb)
  2.1 Evolution of the public company
  2.2 Aligning interests — the pivotal role of boards
  2.3 The contribution of Australia's public companies
  2.4 The evolution of the regulatory framework

Part B: Remuneration trends and drivers

• Chapter 3 Trends in remuneration (PDF - 389 Kb)
  3.1 Introduction
  3.2 Data difficulties and the Commission's approach
  3.3 What has happened to executive remuneration?
  3.4 What has happened to directors' remuneration?
  3.5 Remuneration and corporate performance
  3.6 Executive remuneration overseas
• Chapter 4 Drivers of executive remuneration (PDF - 367 Kb)
  4.1 The 'market' for executives
  4.2 Explaining increases in executive remuneration
  4.3 'Principal–agent' issues and executive pay
  4.4 Broader market drivers of executive pay
  4.5 Some conclusions

Part C: Assessing the remuneration environment

• Chapter 5 Overview of the regulatory and corporate governance framework (PDF - 254 Kb)
  5.1 Australia's current framework
  5.2 Approach to assessing effectiveness
• Chapter 6 Assessing the role of the board (PDF - 357 Kb)
  6.1 The central role of the board
  6.2 Attracting talented and experienced candidates
  6.3 How boards determine pay
• Chapter 7 Linking pay to performance (PDF - 384 Kb)
  7.1 Enhancing performance-based pay
  7.2 Non-recourse loans
  7.3 Hedging of incentive payments
  7.4 Issues with termination payments
• Chapter 8 Remuneration disclosure (PDF - 307 Kb)
  8.1 Current remuneration disclosure
  8.2 Are remuneration reports clearly communicating what investors want to know?
  8.3 Can disclosure requirements be rationalised?
  Annexe: Specific proposals from inquiry participants
• Chapter 9 Strengthening shareholder engagement (PDF - 389 Kb)
  9.1 The non-binding vote in context
  9.2 How effective is the non-binding vote?
  9.3 Elevating the consequences of a significant ‘no’ vote?
  9.4 Facilitating voting
  9.5 Reducing conflicts of interest
• Chapter 10 Taxation issues (PDF - 397 Kb)
  10.1 Introduction
  10.2 Taxation of equity-based payments
  10.3 Treatment of termination payments
  10.4 Taxation of bonuses
  10.5 Allowable tax deductions for employers

Part D: Implications for public policy and corporate conduct

• Chapter 11 The reform package (PDF - 557 Kb)
  11.1 What sort of policy action is called for?
  11.2 Improving board capacities
  11.3 Reducing conflicts of interest
  11.4 Improving relevant disclosure
  11.5 Well-conceived remuneration policies
  11.6 Facilitating shareholder engagement
  11.7 Adding it up
• Appendix A Public consultation (PDF - 177 Kb)
• Appendix B Remuneration data (PDF - 302 Kb)
• References (PDF - 287 Kb)

Please note: The following appendices will only be available online and are not in the printed copy.

• Appendix C Taxation (PDF - 114 Kb)
• Appendix D Research on executive remuneration (PDF - 69 Kb)
• Appendix E Valuing equity-based payments (PDF - 95 Kb)