Do you support the exec pay proposals?
What do you make of the Productivity Commission's recommendations on executive pay? Too harsh, about right, or not tough enough?
The two most controversial recommendations were: 1) the "two strikes and a spill" rule, whereby two successive negative votes of 25 per cent or more on pay would result in a company's entire board facing re-election; and 2) the removal of the right of companies to vote undirected proxies to executive pay policies.
Does the former strengthen the power of shareholders too much?
Bankers will be pleased, however, that the commission did not advocate salary caps.
CBA chief executive Ralph Norris, commented: "Shareholders do get the ability to vote on the remuneration report. I don't make the decision on what I'm paid. That's the decision of the board. However, I don't think there should be a cap on salaries, it is better to have it linked more to performance."
What's your take on the report? Does it achieve a good balance between executive and shareholder interests?
