Shareholder activist Stephen Mayne has put his views on the Productivity Commission's proposed changes to executive pay up on the ABC's The Drum website, and I reckon it's worth a read. He talks a bit about proposals that have received little media attention, such as banning executives from voting on resolutions over their own remuneration reports or that super funds must now disclose how they vote on remuneration reports.
I liked two snippets from the article enough that I thought they were worth repeating:
"...since when has the basic democratic principle of majority rule been a bad thing? If 50% of the voting shares support an external candidate, they should be on the board."
And:
"...that is the heart of the problem. If boards feel their tenure is under no threat from shareholders they will continue to behave recklessly through value-destroying ego-driven takeovers and excessive executive pay deals."
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