The draft Bill contains measures to enhance the disclosure of executive remuneration in Australia. It implements many of the recommendations made by the Corporations and Markets Advisory Committee (CAMAC) in its 2011 inquiry into executive remuneration in Australia.
Together with the 'two-strikes' reform that was enacted in 2011, it strengthens Australia's corporate governance framework, including matters in relation to the remuneration of Key Management Personnel (KMP).
The Bill also includes a number of other measures that:
- Require companies to disclose their clawback policy in the event of material misstatement.
- Increases the flexibility of companies to pay dividends.
- Removes inconsistencies in auditor appointment.
- Improves consistency of remuneration setting for accounting boards, under the Australian Securities and Investments Commission Act 2001.