An interesting article in the Australian Financial Review has stated that Executive’s payouts might soon be limited to just one years pay in a bid to stop multimillion dollar handouts to underperforming executives.
According to the Australian Council of Trade Unions (ACTU) between 1990 and 2005 top CEO pay had ballooned from a multiple of 18 times average full-time earnings to a multiple of 63 whilst the market value of the top 550 listed Australian companies had only risen by 28.5% since April 2000.
Conversely, directors have objected, saying that they won’t get good people.
