The State of Executive Remuneration Disclosure in Australia

Abstract

This article examines the state of corporate executive remuneration disclosure in Australia. The article reviews the executive remuneration literature to determine areas of interest and concern to shareholders, and distils a checklist that reflects the disclosure items that address these areas. The article then compares this checklist with, first, the current disclosure requirements in Australia and, second, the disclosure given in a sample of Australian listed company annual reports. The review identifies significant gaps, particularly in the disclosure of overall remuneration philosophy and the links between remuneration and strategy. The article concludes by making suggestions for regulatory reform to remedy these gaps.