Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Hansard source

The coalition will not be supporting this Greens amendment. The level of executive remuneration is appropriately a matter for companies to decide. It is up to shareholders and their company boards to make these sorts of decisions. Parliament has a role in ensuring that a proper framework is in place to ensure transparency of decision-making around executive remuneration matters. While we have concerns about some aspects of this bill, hence the coalition amendments on the Notice Paper, this is what this bill is trying to do. But there is no role in the coalition's view for government, or the parliament for that matter, to interfere in the level of remuneration by imposing a legislation pay cut.

The Greens proposal in our view is completely irresponsible. To go down this path seriously undermines our international competitiveness when it comes to attracting the best and brightest to run our companies. We do want to attract the best people to lead Australian companies so that those com­panies reach their full potential, which of course helps Australia to maximise our potential in terms of economic growth. This is obviously an area where it is easy to go for the populist proposal that can readily generate a superficial level of public support. But when you actually scrutinise the implications of this and what it would mean in terms of maximising our opportunities across Australia, this would actually be a very, counterproductive amendment if it were passed by the Senate and, as such, the coalition will oppose it and recommends to the Senate that it do likewise.