Media Release
HR institute supports thrust of
executive pay report
September 30
The association representing Australian human resource practitioners has given broad
support to the recommendations of the Productivity Commission Inquiry on executive
remuneration released today.
The 15 draft recommendations were released under the following headings:
Improving board capabilities
Reducing conflicts of interest
Improving relevant disclosures
Remuneration principles and policies
Facilitating shareholder engagement
The national president of the Australian Human Resources Institute, Peter Wilson, whose
organisation made a detailed set of submissions to the Inquiry, commented on the draft
report:
“The Commission’s recommendations are an indication that the Inquiry has taken on board
public indignation and shareholder discontent in this arena, and is looking at practical yet far-
sighted ways to provide reforms that will work.
“The proposed reforms on boards of directors, conflict of interest, disclosure and
shareholder engagement show evidence that the Inquiry has benefited from submissions
grounded in a sound understanding of the executive pay arena, and one that has avoided
simple calls for caps that solve political problems, but which are not sustainable in today's
global business context.
“In seeking further consultation on its draft report, the Commission has wisely called for
practical input that will provide much needed diversity on boards and steps to facilitate their
renewal. In addition to its welcome identification of reform to the “no vacancy” rule on
boards, AHRI would like to see the final endorsement of a national code of remuneration
practice to guide greater transparency on the work of remuneration committees and the
boards that appoint them.”
"This report is a welcome addition to public debate and review of executive pay issues, and
the Productivity Commission is to be commended for the many positive and constructive
policy and practice recommendations in the report", Peter Wilson said.
END
About AHRI
The Australian Human Resources Institute (AHRI) is the national association representing human resource and people
management professionals. AHRI leads the direction and fosters the growth of the HR profession through actively setting
standards and building the capability of the profession
.
For further information contact:
Paul Begley, national manager, government & media relations, Australian Human Resources Institute
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