APRA plans pay changes
The Australian Prudential Regulation Authority (APRA) has released a consultation package on remuneration for general and life insurers.
APRA is proposing changes that “endorse and implement the Financial Stability Forum’s tough new principles on pay and compensation” as stated in the declaration by the G20 leaders at their April meeting in London.
The changes would require company boards to have a remuneration policy that aligns the pay arrangements of executives with the long-term financial soundness of the institution and its risk management framework.
APRA Executive Member John Trowbridge says the regulator is trying to address the need to align pay incentives with the good stewardship of institutions.
“That is why the proposed remuneration requirements are contained in our governance standards,” he said. “Decisions relating to remuneration matters must be well founded and not influenced by conflicts of interest.”
Submissions on the draft standards must be made by July 24.
APRA is proposing changes that “endorse and implement the Financial Stability Forum’s tough new principles on pay and compensation” as stated in the declaration by the G20 leaders at their April meeting in London.
The changes would require company boards to have a remuneration policy that aligns the pay arrangements of executives with the long-term financial soundness of the institution and its risk management framework.
APRA Executive Member John Trowbridge says the regulator is trying to address the need to align pay incentives with the good stewardship of institutions.
“That is why the proposed remuneration requirements are contained in our governance standards,” he said. “Decisions relating to remuneration matters must be well founded and not influenced by conflicts of interest.”
Submissions on the draft standards must be made by July 24.