8/8/2019 Treasury - Miller PPT

1/14

AGovernment

Response

to

the

ProductivityCommissionReport

on

xecu ve

emunera onGeoffMiller

Australian Treasur

8/8/2019 Treasury - Miller PPT

2/14

CorporateGovernanceand

Remuneration

Importanceofsoundcorporategovernance

rinci les

Roleofdirectorsandshareholdersinsettin

remuneration

Theneedforwellstructuredremuneration

8/8/2019 Treasury - Miller PPT

3/14

Australiascurrentremuneration

framework

Comprehensivedisclosureofpayinthe

remunerationre ort

Nonbindin shareholdervoteon

remuneration

ASXCorporateGovernanceCouncils

8/8/2019 Treasury - Miller PPT

4/14

PCsinquiryonExecutive

Remuneration

Broadtermsofreference,thoroughreview

rocess.

17recommendationsaimedat:

mprov ng

oar

capa es; reducingconflictsofinterest;

increasingshareholderengagement;

strengtheningremunerationpolicies.

8/8/2019 Treasury - Miller PPT

5/14

Year1:novoteof25%ormore

Year2:novoteof25%ormore

Extraordinarygeneralmeetingtovoteon

8/8/2019 Treasury - Miller PPT

6/14

PCsrecommendations:

Introducedisclosure

of

acom an s

use

of

remunerationconsultants

beprovided

directly

to

the

board

or

remuneration

Government

supported,

and

further

strengt ene ,t erecommen ations.

8/8/2019 Treasury - Miller PPT

7/14

DisclosuresintheRemuneration

Report

PCsrecommendations:

lainEn lish

summar

of

remuneration

olicies

reportactuallevelsofremunerationreceived;

establishexpertpaneltoreviewframework

Government

supported

the

recommendations

an re erre toCAMAC

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8/14

8/8/2019 Treasury - Miller PPT

9/14

Compositionofremuneration

committees

PCrecommendations:

Amendlistin

rules

to

re uire

ASX

300

com anies

tohavearemunerationcommitteesolely

com risedofNEDs

Elevatethe

status

of

guidelines

dealing

with

The

ASX

and

the

ASX

Corporate

Governance

Counci aveannounce c angesinresponse

tothePCsrecommendations

8/8/2019 Treasury - Miller PPT

10/14

Prohibitingparticipationin

remunerationresolutions

ConflictofinterestwithKeyManagement

Personnel(KMP)

votin

on

their

remuneration

PCrecommendedprohibitingKMPfrom

votingtheir

shares

on

remuneration

strengthened,therecommendation

8/8/2019 Treasury - Miller PPT

11/14

PCrecommendedshareholderapproval

whereaboard

seeks

to

invoke

the

no

vacancyrule

whilstenablingboardstoretainflexibility

Increaseinboardaccountabilitywillfacilitate

effective monitorin of executive

remuneration

8/8/2019 Treasury - Miller PPT

12/14

PCrecommendedrequiringallproxyholders

tovote

all

directed

roxies

on

remuneration

resolutions

Governmentsupported

this

recommendation

and ro osed to extend to all resolutions

Im roveshareholder

si nal

on

resolutions

includingthenonbindingvote

8/8/2019 Treasury - Miller PPT

13/14

Reformstoterminationbenefits

Shareholdersem owered

to

re ect

excessive

terminationbenefits

Alignsremunerationwithrisktaking

Clawbackproposal

ofamaterialmisstatement

8/8/2019 Treasury - Miller PPT

14/14

Soundcorporategovernanceframeworkis

ke

toensurin

well

structured

remuneration

Australiasframeworkishi hl ranked

internationally

ThePCsrecommendationswillfurtherrefine