Submission in Response to Discussion Paper on Remuneration Clawbacks
- Date:30 Mar 2011
- Type:Policy Submission
This submission to Federal Treasury sets out our views on the
Discussion Paper 'The clawback of executive remuneration where financial statements are materially misstated', released by the Federal Government on 20 December 2010.
We noted our strong opposition to a mandated clawback provision of the type outlined in the Discussion Paper.
Reasons for this position included the lack of evidence to support the introduction of a clawback, compliance costs, practical difficulties, the adequacy of existing checks and balances, no "one size fits all" solution, possible unintended consequences and the existence of other approaches for companies such as deferred bonuses.
We put forward that instead of introducing a mandated clawback provision, the Federal Government should adopt the recommendation by the Productivity Commission to remove cessation of employment as a taxation trigger point for bonuses.
Submission to Federal Treasury on Discussion Paper "The clawback of executive remuneration where financial statements are materially misstated" (PDF 4MB)
Cover letter on Submission to Federal Treasury on Discussion Paper "The clawback of executive remuneration where financial statements are materially misstated" (PDF 263KB)