Correcting Power Imbalances In Australian CEO Remuneration: Aligning The Interests Of Shareholders And CEOs

The global financial crisis has heightened media attention towards Chief Executive Officer Remuneration in relation to the 'Average' Australian. The Productivity Commission is currently undertaking a review into executive remuneration because of a fear expressed by many shareholders of ASX-listed corporations at Annual General Meetings that CEOs are not earning their bonuses. As the shareholders' agent, CEOs are responsible for managing the corporation and implementing and developing strategies to increase shareholder value. CEO remuneration is determined by a Remuneration Committee (hereafter referred to as a 'Committee') and assisted by remuneration consultants.