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Corrs In Brief: Executive remuneration - Bill to curb executive golden handshakes08 May 2009
To restrict current rules on termination payments – currently executives can receive payouts up to seven times their total annual remuneration without seeking shareholder approval.
A new bill proposes:
- a lower threshold of one year's average annual base salary;
- that the provisions apply not only to directors but to key management personnel and the five highest paid executives;
- widen the definition of a termination benefit; and
- a new obligation on the recipient of a termination benefit to repay a benefit that was given contrary to the provisions.
The new arrangements will not apply retrospectively. They will only apply to contracts entered into or extended after commencement of the Bill.
For a full copy of this document, please download the attached PDF via the link on the right.
This article provides information about topical legal issues.
Information contained in this article is intended as an introduction only
and should not be relied on in place of legal advice.
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