EXECUTIVES – SALARIES

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

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

Female pay gap exposes unions

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Original article by Samantha Hutchinson
The Australian – Page: 1 & 10 : 28-Sep-18

The Menzies Research Centre’s analysis of the salary disclosures of 11 large trade unions in Australia shows that senior male officials were paid an average of $199,580 in 2017-18. In contrast, the average salary of the top female officials was just $162,669. The gender pay gap for the unions’ top five positions was 20.38 per cent in 2017-18. John Slater of the Menzies Research Centre says the union gender pay gap supports other data which suggests that many women are reluctant to take up jobs with high salaries but long and unpredictable hours of work.

CORPORATES
THE MENZIES RESEARCH CENTRE LIMITED, AUSTRALIA. REGISTERED ORGANISATIONS COMMISSION, GRATTAN INSTITUTE, AUSTRALIAN LABOR PARTY, ACTU, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA

Thorburn faces $1m pay cut in NAB overhaul

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Original article by James Eyers
The Australian Financial Review – Page: 17 & 20 : 20-Sep-18

National Australia Bank will disclose more details of its revised executive pay structure when its annual remuneration report is released in November. Amongst other things, NAB will no longer take into account total shareholder return when determining executive bonuses, although return on equity will continue to be a key metric. NAB chairman Ken Henry says the new pay scheme is aimed at more closely aligning executive remuneration to customer service. CEO Andrew Thorburn is among the executives to be affected by the new remuneration policy.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

CBA stung: pay cuts for executives

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Original article by Andrew White
The Australian – Page: 1 & 6 : 2-May-18

The Commonwealth Bank of Australia will implement all 35 recommendations of an independent panel that was commissioned to examine its governance, culture and accountability. CEO Matt Comyn says the bank has already made a number of changes since the report was commissioned by the Australian Prudential Regulation Authority in the wake of Austrac’s money-laundering investigation. Amongst other things, senior executives will not receive bonuses and some have agreed to a pay cut.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

Call for clean-out of AMP board

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Original article by Andrew White
The Australian – Page: 17 & 21 : 1-May-18

Institutional investors say further boardroom changes are needed at AMP following the resignation of chair Catherine Brenner in the wake of the banking royal commission’s revelations. First Super CEO Bill Watson still intends to vote against the election of three directors at the upcoming AGM, arguing that AMP directors must be held accountable. Australian Council of Superannuation Investors CEO Louise Davidson says AMP should also look at stripping bonuses from executives who were involved in the fees-for-no-service scandal. AMP has appointed Mike Wilkins as executive chairman.

CORPORATES
AMP LIMITED – ASX AMP, FIRST SUPER PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ART GALLERY OF NEW SOUTH WALES, BORAL LIMITED – ASX BLD, COCA-COLA AMATIL LIMITED – ASX CCL, CLAYTON UTZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, IMF BENTHAM LIMITED – ASX IMF, PHI FINNEY McDONALD, SHINE LAWYERS, SLATER AND GORDON LIMITED – ASX SGH, QUINN EMANUEL URQUHART AND SULLIVAN LP