ETC – AUSTRALIA

ABC execs paid bonuses to stay

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Original article by Stephen Brook
The Australian – Page: 24 & 26 : 12-Nov-18

Sources within the ABC have indicated that its board approved bonuses to retain a number of senior executives after Michelle Guthrie succeeded Mark Scott as MD in 2016. Acting MD David ­Anderson is said to be among the executives who received a retention bonus. Former COO David Pendleton, who resigned in 2017, is also said to have been offered such a bonus. Executive remuneration at the public broadcaster has come under scrutiny after its latest annual report showed that bonus payments exceeded $2m in 2017-18.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION

Bonuses risk igniting ABC powder keg

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Original article by Deborah Cornwall, Lilly Vitorovich
The Australian – Page: 3 : 7-Nov-18

ABC journalists have raised the prospect of industrial action over severe staff shortages at a time when the public broadcaster’s executives are receiving large bonuses. Members of the Media, Entertainment & Arts Alliance’s ABC house committee have sought meetings with acting chairman David Anderson to express the journalists’ concerns, but he has declined to do so. Liberal senator Eric Abetz is also seeking an explanation for the ABC’s decision to give one executive a bonus of more than $230,000 in 2017-18.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, LIBERAL PARTY OF AUSTRALIA

‘ABC wallowing in money’: Abetz takes swipe at $250,000 bonus

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Original article by Lilly Vitorovich
The Australian – Page: 7 : 6-Nov-18

Liberal senator Eric Abetz has criticised the ABC’s executive remuneration policy, arguing that the public broadcaster needs to justify its excessively high salaries. Abetz was responding to revelations that one ABC executive was paid more than $692,000 in 2017-18, including a bonus of $232,500. He adds that the ABC and its supporters cannot complain about lack of sufficient funding while paying exorbitant salaries.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, LIBERAL PARTY OF AUSTRALIA, SPECIAL BROADCASTING SERVICE (SBS), AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, FRIENDS OF THE ABC, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Guthrie’s pay up as ABC lost millions

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Original article by Stephen Brook, Lilly Vitorovich
The Australian – Page: 1 & 7 : 1-Nov-18

The ABC’s annual report shows that the public broadcaster booked an operating loss of $71.2m in 2017-18, compared with expectations of a $3.09m surplus. The loss has been attributed to factors such as $54.7m in redundancy costs and higher investment in local content. The annual report also shows that former MD Michelle Guthrie was paid $963,991 in 2017-18, an increase of 8.2 per cent. Ex-chairman Justin Milne was paid $187,213 in his first – and only – full year in the role.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION

Chairmen in hot seat at commission

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Original article by Richard Gluyas
The Australian – Page: 19 & 22 : 31-Oct-18

Remuneration in the banking sector will come under scrutiny during the financial services royal commission’s final round of public hearings, which commences on 19 November. There is also speculation that the chairs of some, if not all, of Australia’s four major banks will be asked to appear before the inquiry. The banks’ self-­assessments of their governance and culture are also expected to be on the royal commission’s agenda.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Industry staff tapped to opt out of new deal

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Original article by Sally Whyte
The Canberra Times – Page: 16 : 26-Oct-18

The federal Department of Industry, Innovation & Science may use a clause in the Public Service Act that allows departmental secretaries to make determinations about pay and conditions, so long as there is no loss to the benefits of staff. Civil servants are being asked to vote on whether they want the Department to make such a determination, which would see the terms of their current enterprise agreement maintained, or to enter into a new bargaining process with the Community & Public Sector Union. The CPSU wants staff to vote against the determination proposal.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, COMMUNITY AND PUBLIC SECTOR UNION

Macquarie scraps stockbroker commissions to tackle conflicts

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Original article by Joyce Moullakis, Samantha Bailey
The Australian – Page: 17 & 28 : 23-Oct-18

Macquarie Group has advised that it will abolish commission payments for its stockbroking advisers and move to a salary and profit share remuneration system from April 2019. Commissions were criticised by former Commonwealth Bank CEO and current AMP chairman David Murray in his Financial System Inquiry as causing the potential for conflicts of interest. However, Macquarie’s decision may not please all brokers and could lead to the departure of some staff.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AMP LIMITED – ASX AMP, CREDIT SUISSE (AUSTRALIA) LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, JBWERE LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, CRESTONE WEALTH MANAGEMENT LIMITED

Tabcorp hits out over 40pc first strike

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Original article by Sarah-Jane Tasker
The Australian – Page: 17 & 21 : 18-Oct-18

Tabcorp Holdings’ remuneration report was rejected by 40.4 per cent of shareholders at its 2018 annual meeting. Tabcorp chair Paula Dwyer attributes the high protest vote to factors such as the wagering group’s decision to terminate its Sun Bets joint venture in the UK and a record fine of $45m for breaching anti-money-laundering and counterterrorism financing laws. Dwyer has also accused proxy advisers of providing misleading information to investors about Tabcorp, and says shareholders should engage directly with the company rather than via such advisers.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, SUN BETS, NEWS CORPORATION – ASX NWS, TATTS GROUP LIMITED – ASX TTS, CALTEX AUSTRALIA LIMITED – ASX CTX, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN FEDERAL POLICE, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

Rio reverse reveals investor ire on pay

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Original article by Patrick Durkin
The Australian Financial Review – Page: 15 : 10-Oct-18

Rio Tinto has advised that it will not proceed with plans to adopt a new executive remuneration model after meetings with key shareholders indicated that it was unlikely to secure sufficient support from investors. A number of Australian-listed companies have adopted so-called hybrid remuneration structures, including Telstra, AMP and Wesfarmers. However, investors have raised concerns about the hybrid model, and the issue has attracted scrutiny by the financial services royal commission.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TELSTRA CORPORATION LIMITED – ASX TLS, AMP LIMITED – ASX AMP, WESFARMERS LIMITED – ASX WES, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, QBE INSURANCE GROUP LIMITED – ASX QBE, PERPETUAL LIMITED – ASX PPT, JB HI-FI LIMITED – ASX JBH, ISENTIA GROUP LIMITED – ASX ISD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Banks to end charging dead, conflicted fees

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Original article by James Frost
The Australian Financial Review – Page: 13 & 17 : 10-Oct-18

The Australian Banking Association has proposed a number of changes to the banking code of practice in response to the misconduct exposed by the financial services royal commission. Amongst other things, banks have agreed to take action to ensure that they do not continue to charge fees after a customer has died, while the banks will ensure that they do not charge fees for services that are not provided or are not needed by a customer. The ABA and its members will also lobby for the complete abolition of trailing commissions for financial advice.

CORPORATES
AUSTRALIAN BANKING ASSOCIATION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, CLSA AUSTRALIA PTY LTD, COMMONWEALTH FINANCIAL PLANNING LIMITED, COUNT FINANCIAL LIMITED, FINANCIAL WISDOM LIMITED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT