Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

Indeed, Senator Evans, it is a very, very good question. I thank Senator Lundy for referring to some of the major reforms that the Rudd Labor government announced yesterday to tackle the issue of significant, indeed massive, golden handshakes that we have seen emerge over the last decade or so. There is indeed strong concern about the level of so-called golden handshakes in the Australian community—including in the shareholder community, I might say.

One key element of the decisive, comprehensive reforms announced yesterday is to empower individual and institutional shareholders to prevent the payment of excessive and unjustified golden handshakes to company executives. These payments are often made when a company has been driven into the ground. It is totally inappropriate for payments to be made in those circumstances. They usually bear no resemblance to the future good governance and good economic operation of a firm. Therefore, the government strongly believed it was time to crack down on these particular forms of payment.

One may remember the days when, if someone retired or left the workplace, they often received a gold watch. But unfortunately the level of these payments is now such that we are no longer seeing gold watches; we are seeing a truckload of bullion being paid to many of these executives.

The reforms announced by the government yesterday have received widespread support. Mr David Gonski from the ASX said: ‘12 months has been the convention. This is a good announcement. I would compliment the Treasurer on not taking the quick decision to prescribe—(Time expired)