find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Property lawyer - Melbourne
Category: Property Law | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Impressive client list, national firm · Well-led and high-performing team
View details
Senior family lawyer - Melbourne
Category: Family Law | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Outstanding national firm · High-calibre family law team
View details
Risk professionals slam proposed exec pay laws

Risk professionals slam proposed exec pay laws

The Federal Government's efforts to target golden handshakes paid to poorly performing senior executives will result in "heavy-handed" legislation, the peak body representing governance, risk and compliance professionals has claimed.

THE Federal Government's efforts to target golden handshakes paid to poorly performing senior executives will result in "heavy-handed" legislation, the peak body representing governance, risk and compliance professionals has claimed.  

The legitimate termination payouts of middle managers risk being significantly delayed and possibly even voted down by shareholders if the Government pushes ahead with proposed legislation to cap executive termination payments in its current form, Chartered Secretaries Australia (CSA) said today.

In its rush to act, the government has delivered a heavy-handed framework that also captures genuine payments made to middle managers on resignation, retirement or redundancy, Tim Sheehy, CSA’s chief executive said today.  

“The definition of a termination payment is currently so broad that legitimate entitlements like accrued annual leave, long service leave, and bona fide redundancy payments, as well as salary sacrificed superannuation contributions, are also caught,” said Sheehy.  

CSA calls into question the possibility that the Bill will extend beyond key executives of the listed parent company, to management personnel of its subsidiary companies. It claims this would make the legislation impractical and unworkable, with no public benefit to shareholders as many large listed companies have hundreds of unlisted subsidiaries in Australia. 

“BHP Billiton has over 200 Australian subsidiaries, the Commonwealth Bank has over 500 and Rio Tinto approximately 300. It would be an administrative and compliance nightmare to have to submit the termination payments of general managers of these entities to a shareholder vote, particularly when these managers are often not on the same scale of seniority as the parent company and their potential termination payments would not generally be at a level to cause concern to shareholders or the broader community. This is another major oversight,” said Sheehy.




Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Risk professionals slam proposed exec pay laws
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Warning
Aug 23 2017
NT Law Society sounds alarm on mandatory sentencing
The Law Society Northern Territory has issued a warning over mandatory sentencing, saying it hasn’...
Unite
Aug 22 2017
Professionals unite in support of marriage equality
The presidents of representative bodies for solicitors, barristers and doctors in NSW have come toge...
Aug 21 2017
Is your firm on the right track for gig economy gains?
Promoted by Crowd & Co. The way we do business, where we work, how we engage with workers, ev...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...