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Telephone 1300 368 448 or (02) 9411 1505 | Fax (02) 9411 6663 | Email share@asa.asn.au | Web www.asa.asn.au
MEDIA RELEASE
Wednesday 18th March 2009
ASA responds to Treasurer’s action on ‘golden handshakes’
The Australian Shareholders' Association (ASA) welcomes the announcement by the Treasurer,
Wayne Swan, of reforms aimed at reducing excessive termination benefits to company directors
and executives.
“Restricting termination benefits to no more than one year’s base pay is a good place to start
tackling the issue of excessive pay”, says Stuart Wilson, Chief Executive Officer of the Australian
Shareholders’ Association.
Mr Wilson comments “The ASA has been advocating for shareholder approval of this element of
remuneration. There is however a good deal of work ahead of the Government in ensuring that
the changes are watertight.”
“We shouldn’t underestimate the ingenuity of senior executives when it comes to finding ways to
secure the best outcome on pay. The Treasurer has announced that the definition of termination
benefits will be broadened however greater measures might be needed. “
“It is easy to envisage a situation where an executive could stay on as a consultant for a period
and earn the benefits in that position, thereby avoiding the requirement of shareholder approval.
“What we do know is that even before the ink is dry on the legislation there will be an army of
lawyers and remuneration consultants looking for ways to avoid it.”
Mr Wilson says, “The amendments, if successful, will certainly assist in curbing executive
remuneration. It is currently within the power of every board to ensure that remuneration is not
excessive. The fact that the Government has been forced to take this action is an indictment on
the performance of Australian boards on the issue of remuneration.”
“Shareholders are being given the final say on golden hand shakes because of boards’ chronic
failure to act.”
FOR FURTHER INFORMATION:
Stuart Wilson
Chief Executive Officer
Phone: 1300 368 448
Mobile: 0421 705 251
ABOUT THE AUSTRALIAN SHAREHOLDERS' ASSOCIATION
The Australian Shareholders’ Association (ASA), a not-for-profit organisation, has been protecting and advancing the rights
of shareholders in Australian listed companies since 1960. With a focus on good company performance and governance,
the ASA has been successful in raising the standard of corporate behaviour in Australia. Our extensive network of
experienced company monitors review company performance and governance issues, analyse financial statements, raise
concerns and vote at annual general meetings and report all of their insights to members. Shareholders can nominate the
ASA to vote on their behalf at company meetings. The ASA also provides access to value for money, independent
education seminars and workshops, regular meeting and discussion groups and a monthly magazine, Equity.
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