ASX chairman welcomes 'focus' of shareholder pay votes

Chairman of the Australian Securities Exchange (ASX) David Gonski has admitted his initial opposition to shareholder votes on executive pay was misplaced.

Speaking to the Australian, he conceded he "turned out to be wrong" over the measure, which gives investors a non-binding vote on company remuneration reports at annual meetings.

Mr Gonski said the move has forced companies to review their executive compensation policies and allowed shareholders to engage with the issue on a new level.

"I do think the focus that the non-binding plebiscite has brought has been very good. It has made us as directors focus stronger," he told the newspaper.

According to new research from the Australian, chief executives of firms listed in the S&P/ASX 200 index saw their total remuneration increase by an average of 18.9 per cent last year.

The study revealed a median pay rise of 13 per cent across the nation's top companies.

Phil Spathis of the Australian Council of Superannuation Investors recently told the Sydney Morning Herald that shareholders will not accept "smoke and mirror responses" from companies over excessive pay packets.