Here’s the headline
Swan to curb ‘obscene’ salaries
Here’s the first paragraph
The Federal Government will introduce new laws to curb excessive executive payouts, Treasurer Wayne Swan says.
Here’s the first catch
Under the change flagged by the treasurer, shareholder approval will be required for termination payouts of more than one year’s base pay.
So basically the Government isn’t actually cracking down on exec pay, it’s just changing the approval goal posts.
And here’s the second catch: who owns most of these companies in the first place?
Answer: funds managers with predominately super fund money.
Who runs most super funds?
Who sits on the boards and gets big executive salaries to begin with?
Answer: usually the same people who sit on the boards of banks.
So when executive salary comes up, what’s the real chance that these funds will vote against proposals? Maybe some industry super funds will vote no, but it won’t be enough.
Double bonus round
“The government will curb golden handshakes in the form of excessive termination payments,” he said.
So it’s only when they leave, not what they get paid upfront? 🙂
Overall I don’t believe the Government should be interfering with pay rates in private companies (well, bailouts aside), but if they’re going to do it, do it properly, not just the piss and wind claytons version.