ACTU: Halt Corporate Excess

Date: 06 March 2003

The ACTU will call on the Howard Government to bring company directors' and chief executives' salaries into line with shareholder and community expectations, at a hearing of the Senate Economics Committee Inquiry in Canberra today.

"At the moment, there are no rules at the top end of town. The excessive pay rises and pay outs just keep coming," said ACTU President Sharan Burrow.

"The Howard Government has been standing idly by as the corporate greed of its business friends continues to flourish. Meanwhile it does everything it can to deny low paid workers a decent wage increase," Ms Burrow said.

When the Minimum Wage Case begins later this month, the government will argue against the ACTU's modest claim of $24.60 a week for 1.7 million workers.

Meanwhile average annual remuneration, excluding retirement benefits, for Australia's top 1OO CEOs increased by 38% to $2 million, 44 times average weekly earnings, up from 34 times average earnings in the previous year, and amounting to a weekly pay rise of $10,567.

"In the current climate, Tony Abbott's counter-offer of $8.70 a week after tax, or 85 cents adjusted for inflation, is an insult to hard-working Australians," said the ACTU President.

In its submission to the Senate Inquiry, the ACTU has recommended the following amendments to the Corporations Amendment (Repayment of Directors' Bonuses) Bill 2002:

Requiring boards of public companies to establish remuneration committees comprised of independent directors;

Requiring all options packages to be subject to performance benchmarks which are disclosed to shareholders;

Requiring performance benchmarks to be applied to all bonuses or other payments exceeding $40,000 in a year where the recipient's base remuneration exceeds $100,000;

Removing tax deductibility for that portion of remuneration packages which exceeds $1 million.

ACTU President Sharan Burrow will give evidence at the Senate inquiry today at 4.30pm in Room 2S3 Parliament House, Canberra.

For further information

Contact:	Gina Preston
Union:	ACTU
Phone:	03 9663 5655
Contact Mobile:	0408 513 849
Fax:	03 9663 8220
Email:	gpreston@actu.asn.au
WWW:	http://www.actu.asn.au/

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