Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Hansard source

Earlier this year the government introduced significant reforms in relation to executive remuneration that we argue and believe reflect this need for balance. The reforms were first and foremost about giving more power to shareholders. We should not forget that it is shareholders who ultimately pay the wages of executives. Shareholders take on the risks of investing capital in the company, so it is only appropriate that executives are accountable to those shareholders. We should not forget that other employees have to go through transparent and to some degree regulated processes when they seek pay rises, and executives should be no different.

There are some key elements of the reforms. There is a two-strikes process. Under the new two-strikes rule, if a company remuneration report has received a 'no' vote of 25 per cent or more in two consecutive annual general meetings, shareholders will have the opportunity to vote on a motion to spill the board. Where a spill motion has been supported by a majority of shareholders— (Time expired)