Executive remuneration in Australia has evolved as the major industry for both private and public sector companies. Over the years, it has become one of the most important aspects of the business world. In order to attract top management, companies in Australia have made various changes to the existing rules on executive remuneration. Many companies are now paying a certain amount of performance incentives and bonuses to their executives on a regular basis. It is also common to see that executive remuneration in Australia has been affected by the increasing costs of doing business in the country.
Executive Remuneration in Australia
For companies and individuals, executive pay in Australia has also changed over the years. Companies have been able to reduce their costs by reducing the number of people that they hire, they also reduce the number of employees that they retain and many other factors. Some companies have also adopted a “buy down” strategy whereby they sell assets of a company that is no longer making a profit in order to raise the money required to pay the wages of the executives.
In recent times, executive remuneration in Australia has gained greater prominence because of the new regulatory reforms in place in the country. The introduction of the Sarbanes-Oxley Act in 2021 affected the entire sector of business ethics in Australia. As this Act imposed new restrictions on executive remuneration, many companies lost their ability to offer their executives high salaries and benefits. On the other hand, since the Act was introduced, many other countries including the US, UK and New Zealand, have also introduced laws that aim to curb executive remuneration.