ASIC calls for better executive remuneration disclosure
The Australian Securities and Investments Commission (ASIC) has called on companies to improve their executive remuneration disclosure after a review of 50 remuneration reports from Australia's biggest companies.
Drawn from a pool of 300 remuneration reports for the year ended 30 June 2011, ASIC deputy chairman Belinda Gibson said the reports revealed that companies needed to provide more information to investors as to why the directors had adopted a particular remuneration arrangement.
This would allow shareholders to assess the appropriateness of a remuneration package in light of a company's circumstances, she said.
As part of its review, the commission also surveyed 12 ASX 300 listed companies - which held their annual general meeting (AGM) between 21 October 2011 and 23 November 2011 - on the way they have managed new voting requirements under the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Act 2011.
The amendments exclude key management personnel (KMP) and their closely related parties from voting on the resolution to adopt a remuneration report.
Based on the review, ASIC outlined a number of procedures that the AGM chair could adopt to ensure that companies are compliant.
These include requesting the KMP to advise their closely related parties of the voting prohibitions, seeking assurances from KMP that they will not cast votes and confirming that the share registry service provider has excluded prohibited votes.
The regulatory body has also encouraged directors to use the Chartered Secretaries Australia's 'Guidelines on managing voting exclusions on remuneration-related resolutions' to ensure votes on remuneration are properly conducted.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
