I agree with most of Labor's approach at culling corporate greed, enough is enough! This is partially quoted below, the full document is available from: http://www.alp.org.au/media/0104/20006786.html Shareholders, employees and all citizens must demand more from their representatives to improve the existing laws and introduce new laws.
Corporate greed
2003 was a year that was synonymous with corporate greed.
Employees, retirees and shareholders funders were plundered by the greed and avarice of Australia's directors and executives.
In 2003, CEO salaries continued to defy community expectations.
- The ex CEO of Southcorp, Mr Keith Lambert, took home a $4.4 million package after only 18 months at the helm—in spite of the fact that the group's profits plunged by $204 million. [2]
- David Higgins, the ex CEO of Lend Lease took home $8 million on his departure including a $1.61 million payout for promising not to work for a rival—in spite of the company recording a loss of $715 million. [3]
- David Murray from the Commonwealth Bank, took home $2.5 million which was a 7.4% increase in salary in 2002–2003, despite the bank's net profit slumping 24% in the same period. [4]
In 2003, Australian executives were paid outrageous payments even when they left the company. For example: [5]
- The ex CEO of AMP, Paul Batchelor, was paid $2.1 m in spite of master minding AMP's disastrous UK expansion;
- Keith Lambert left Southcorp but was still paid $4.4m;
- Brian Gilbertson left BHP Billiton following “irreconcilable” differences but was still paid more than $12.4 million;
- CK Chow from Brambles received over $4 million including a $227,000 bonus in a year when the company's net profit fell 39%;
- And then there's AMP. AMP has managed to halve its size this year and yet still pay their executives one-off “demerger payments” which cost the company $40 million (in addition to their normal salaries).
This is piracy in the 21st century!
These obscene payouts have outraged you, me and the rest of the Australian public.
Enough is enough.
- If boards are not going to reign in corporate greed, we have to make them.
- If boards are not going to disclose the way they set the remuneration packages of their executives, we have to make them.
- If boards are not going to give shareholders are say on the size of those packages, we have to make them.
Australians have lost faith in the system.
Australians no longer trust companies to look after their employees and their shareholders
Australians believe that boards put their own interests above the interests of the owners of the company—the shareholders.
To restore Australian's faith in the system, we need major changes to the regulatory framework.