New executive remuneration laws give more power to shareholders

Executive pay remains a contentious issue for shareholders of organisations and the broader community.

Links can be drawn between the ‘Occupy Movement’ (which has sprung up in locations around the world, protesting social and economic inequality, corporate greed and corruption) and the substantial difference between the national average wage and what Key Management Personnel (KMP) are paid.

There is no shortage of examples where the public and shareholders have been at odds with Boards’ interpretation of fair pay.

Look at the recent pay rise of Alan Joyce, CEO of Qantas, which was questioned widely in the media and public circles. It practically coincided with the industrial dispute that cost the business millions.

Remuneration and an individual’s value to an organisation is determined by a complex interaction of factors.