AICD welcomes release of APRA remuneration draft standards
Thu 28 May 2009
AICD welcomes release of APRA remuneration draft standards
Media & Communications: Media Release
The Australian Institute of Company Directors (AICD) has welcomed the approach taken by the Australian Prudential Regulation Authority (APRA) in its proposed new governance standards for remuneration in regulated institutions, aimed at aligning remuneration arrangements with risk management and their long-term financial soundness.
APRA today released a consultation package including a discussion paper, draft extensions to governance standards for authorised deposit-taking institutions and general and life insurance companies and a draft prudential practice guide for the boards of regulated entities.
“APRA is right to take a principles-based approach, which allows boards the flexibility to design remuneration arrangements that suit the structure and business objectives of their individual institutions, rather than more prescriptive measures or attempts to address the absolute level of remuneration,” said AICD chief executive, John Colvin.
“AICD is still considering the details of the proposed extensions to the governance standards. However, whilst we may make further submissions on some aspects of the new standards, what is being proposed would in broad terms appear the best approach in respect of remuneration in APRA-regulated entities.”
AICD has appreciated the opportunity for consultation with APRA prior to the release of the discussion paper and looks forward to making further submissions on the draft standards and prudential practice guide, Mr Colvin said.
“The thorough approach APRA has taken to hearing the views of business and those with professional expertise in the area, allowing adequate time for detailed consultation and submissions, is to be commended,” he said.
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Australian Institute of Company Directors (AICD) provides education, information and advocacy for company directors Australia-wide, with offices in each state to cater for over 24,000 members. AICD members work in diverse corporations such as small-to-medium enterprises, the Top 200 corporations, public sector organisations, not-for-profit companies, large private companies and smaller private family concerns.