“Balanced scorecards”, of the kind countenanced by the Australian Prudential Regulation Authority, are inherently unbalanced.
The Deepwater Horizon disaster in April 2010 killed 11 workers and caused the greatest environmental disaster in US history. Banking regulators can learn from the penalities introduced to motivate executive interest in putting safety first.
EPA/US Coast Guard/Handout
Banking executives have huge incentives to maximise profits at all costs. They need equally compelling incentives to do the right thing.
The gulf between what Domino’s CEO Don Meij earned in 2017, A$36.8 million, and those who deliver the pizzas is extraordinary, so is the CEO worth that much?
Paul Miller/AAP
The evidence suggests the impact of CEOs on company performance isn’t enough to justify their sky-high pay, which is really based more on a culture of power and privilege.
APRA chairman Wayne Byres addresses parliament.
AAP
In choosing not to impose restrictions on bonuses and commissions, the government left untouched the incentives for inappropriate financial advice and lending decisions.
In 2005, regulations were introduced that required US firms paying CEOs with stock options to list them in financial statements.
Brendan McDermid/Reuters
The amplified public concerns about executive pay that led to the cementing of reporting and disclosure into law, may start trend of voluntary disclosure among professional bodies.
Employees in the study were willing to put their own interests before their employers for money.
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In times of austerity, one of few things that seems to be booming is the trade in wheelbarrows. At least, company directors at major corporations will need them to collect vast amounts of remuneration…
All this cash should soften the landing.
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After the revelation that Stephen Elop, the CEO of Nokia, received a bonus of €18.8m following the company’s merger with his former employer Microsoft, executive “golden parachutes” are back on the public…
Does executive pay really have no effect on total shareholder return?
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The relationship between executive pay and investor return is a provocative topic that always elicits much spirited comment, especially among those who believe the answer is a resounding “no”. Business…
How much should CEOs get paid? Job evaluation systems may provide an answer.
AAP
Are CEOs worth their massive remuneration packages, or is there too much cash in the corner office? Executive pay has been in the spotlight in recent weeks amid a lacklustre reporting season for some of…
Blue Scope Steel’s Paul O'Malley has sought to sidestep shareholder anger with his decision to forgo a performance bonus.
AAP
It’s reporting season and the interest in executive pay is heating up again. Alan Joyce is the latest CEO to forgo a bonus, joining a growing number of high profile business leaders including Rio Tinto’s…
Stuck in Botany Bay: Greenpeace activists celebrate the Danish government’s decision to halt Orica’s plans to ship toxic waste to Denmark.
AAP
Are sustainability-dependent executive bonuses the answer to saving the planet? Research recently conducted by the Centre for Corporate Governance at the University of Technology, Sydney, examined whether…