Experts to discuss executive pay disclosure in Australia

Australia's Corporations and Markets Advisory Committee is set to host a meeting on the simplification of remuneration reports next month.

The organisation, which advises the federal government on matters of corporate law, will discuss the issue with various industry groups and trade associations, the Australian reports.

Earlier this year, the Australian Institute of Company Directors (AICD) said the disclosure of remuneration data by companies is often "unduly complex" and "of limited use to shareholders".

The AICD called for reports to focus on what compensation executives had actually received that year, rather than obscuring the picture with details of future bonus entitlements and share allocations.

Chief executive of the institute John Colvin said the annual meeting season has emphasised the need for reports on pay to be simplified.

However, corporate governance experts in Australia have been pleased with the response to non-binding votes on executive pay at recent meetings.

Several large organisations have seen their remuneration reports voted down by shareholders, with companies generally seen to be more responsive to investors' concerns as a result.

"You have to commend the maturity of the responses of many boards," strategist at the Australian Council of Superannuation Investors Phil Spathis told the newspaper.