Shareholders’ Revolt Against Executive Remuneration

Running head: EDITORIAL FOR AUSTRALIAN NEWSPAPER
EDITORIAL FOR AUSTRALIAN NEWSPAPER
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2EDITORIAL FOR AUSTRALIAN NEWSPAPER
Shareholders’ Revolt Against Executive Remuneration
The financial sector of Australia is facing a hard time as all the shareholders have moved
against the remuneration structure of two of Austraia’s largest banks. After the revelation of this
misconduct by the bank, experts are saying that the financial sector of Australia is about to face
the toughest time.
According to the financial experts, nearly 88% of the shareholders, protested against the
remuneration plan as depicted in the report of NAB. The report containing the new remuneration
structure was published during the annual general meeting of NAB. The investors have termed
the proposed remuneration system as ‘blunt’ and ‘harbinger of the failure’ for a capitalist
economy.
The report gave the shareholders as well as investors a shock by declaring a reduction in
the executive bonus by 30%. Along with NAB pother major banks have also decided to reduce
incentive payments following the revelation in the financial services as well as a decline in the
share prices.
After this declaration by the royal commission the shareholders expressed their
disagreement by voting against the proposed plan of the executive remuneration. Experts argue
that following the previous signals received through the proxy voting power of the shareholders,
Australian Council of Superannuation Investors (ACSI), Australian Shareholders Association
(ASA) have also planned to vote against the report of NAB regarding the regarding the executive
remuneration system (Business Insider Australia, 2019).