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Reforms to executive remuneration.

20/04/2010

The Government has supported 16 of the Productivity Commission’s proposals for reform of Australia’s executive remuneration framework. In addition, it also proposes to claw back bonuses paid to directors and executives in the event of a material misstatement of a company’s financial statements.

It rejected the proposal for tax deferral of equity or other tax-deferred benefits until cessation of employment. The Government thinks its removal will disproportionately benefit  high-income employees at significant cost to Government revenue.

Legislation giving effect to the reforms will be introduced this year, following public consultation on an exposure draft.

Read the press release by the Treasurer and the Minister for Corporate Affairs.

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