LISTED companies may not have kept pace with corporations law requirements in relation to termination payments and the disclosure of remuneration reports.
Thanks to CLERP 9, directors of a listed company must now produce an annual remuneration report and present it to the annual general meeting for a non-binding vote.
The report must include:
• The board’s policy for determining the remuneration of directors, secretaries and senior managers;
• Discussions about the board’s remuneration policy in relation to company performance;
• A summary of how bonuses, if used, are determined and why the company chose to adopt them as a remuneration means; and
• Details about the remuneration of each director and the five most highly paid executives in the company, including any bonuses, the value of options granted to them, the periods of notice required and the termination payments provided for under each contract.
Also, retirement payments that exceed a value, determined by formula, must be approved by the members of the company.
Graham Nagle
9429 7597
Minter Ellison