Pays High, Profits Low

Executives continue to expect full remuneration and bonuses despite poor performances. As one punter plainly put it "ANYONE could go in and lose a company millions of dollars...it takes a senior executive to expect to get paid for it." The Reserve Bank's profits fell but Ian Macfarlane still got a substantial pay rise. Village Roadshow, after a terrible year of write-downs and dwindling profits, still made large payments to the executive team. Shareholders must be given the power to enforce executive pay levels, particularly in cases of poor performance as too few board directors and executives will take it upon themselves to do so.

PICKS OF THE WEEK

Pay rise as Reserve's profits slip

IN the best traditions of the private sector, the Reserve Bank of Australia yesterday raised the pay of its top executive while reporting a fall in underlying profits.

Full story: http://www.theaustralian.news.com.au/common/story_page/0,5744,7237835%255E643,00.html

Sick Village pays execs top dollar

Village Roadshow posted a bottom-line loss of $26 million this year, slashed the value of its cinema assets and suspended payments on its ordinary and preference shares.

Yet it still managed to pay its top executives salaries well in excess of $1 million each.

Full story: http://www.smh.com.au/text/articles/2003/09/15/1063624980066.htm

Chernin tops News pay lists

The News Corporation Ltd chief operating officer Peter Chernin remains the company's most highly paid executive but earned less in 2003 than the previous year despite a huge turnaround in the company's profitability.

The company's annual report, released yesterday, showed Mr Chernin's total salary package in 2003 was valued at $US17.3 million, compared to $US17.9 million in 2002.

Full story: http://www.theaustralian.news.com.au/common/story_page/0,5744,7246663%255E643,00.html

Seven's former chief gets $1.3m

Seven Network has forked out $1.29 million in termination payments to the former head of its television operations, Maureen Plavsic.

Full story: http://www.theage.com.au/text/articles/2003/09/15/1063624982044.htm

A bonus for the boss? ... How dare they!

She is the sole remaining descendent of the original Bramble family - her father, Walter, Bramble built Brambles in the first half of last century - and she has something to say to Sir C.K. Chow, the company's present chief executive.

Full story: http://www.smh.com.au/text/articles/2003/09/16/1063625036378.htm

Tough, brief at the top

CHIEF executives in Australia survive only half as long as their US and European counterparts - hounded into early retirement by a shallow media, institutional shareholders that hunt in packs and a savage corporate culture that doesn't allow them to learn from mistakes.

Full story: http://www.theaustralian.news.com.au/common/story_page/0,5744,7299705%255E462,00.html

Watchful funds 'keep companies honest'

Trustees of superannuation funds who were also shareholder activists were protecting the retirement savings of their members, Australian Institute of Superannuation Trustees president Susan Ryan said yesterday.

Full story: http://www.theage.com.au/text/articles/2003/09/16/1063625032429.htm

Beat the cheats with precautions

More than one in four small businesses have been victims of fraud in the last two years - and an accountants' group says business practices are partly to blame.

Full story: http://www.theaustralian.news.com.au/common/story_page/0,5744,7275050%255E643,00.html

New Tel's best asset: a case against directors

Creditors of failed telecom New Tel may soon get a better idea of what payout they can expect with New Tel's liquidator preparing to tap its most valuable asset: legal action against former company directors.

Full story: http://www.smh.com.au/text/articles/2003/09/14/1063478064067.htm

LEGISLATION NEWS

Shareholders could get to vote on executive salary packages

Shareholders will get a say in company executives' remuneration, including golden handshakes and option deals, under the next wave of financial services reform laws.

Full story: http://www.smh.com.au/text/articles/2003/09/16/1063625036563.htm

Call for new rules to aid failing giants

Voluntary administration rules designed to help failing companies stay afloat may not be effective for large corporations and could need strengthening, a government advisory committee has said.

Full story: http://www.theage.com.au/text/articles/2003/09/11/1063268513067.htm

Samuel decrees finesse the delicate art of refusal

Within two days early this week the "new" Australian Competition and Consumer Commission was launched. It shouldn't have been a surprise that the new ACCC has more commonalities than differences with the old.

Full story: http://www.smh.com.au/text/articles/2003/09/12/1063341774551.htm

Licence rules relaxed

New rules designed to increase competition in the Australian financial services market will allow foreign companies to set up shop without getting a local licence.

Full story: http://www.theage.com.au/text/articles/2003/09/12/1063341771254.htm

INTERNATIONAL

Commonwealth body presses for firmer commitment from rich nations

BANDAR SERI BEGAWAN (AFP) - The world's richest countries must show a greater sense of commitment towards the creation of a new global multilateral trading accord after the collapse of the World Trade Organization (WTO) talks in Mexico, the Commonwealth grouping says.

Full story: http://au.news.yahoo.com//030917/19/lqig.html

US Excess

Sack the lot, says ex-New York exchange boss

Former New York Stock Exchange chairman James Needham called for the resignation of chief executive officer Richard Grasso and the entire board after directors approved a $US140 million ($215 million) payout to Mr Grasso this month.

Full story: http://www.smh.com.au/text/articles/2003/09/16/1063625037208.htm

SEC chairman under fire over Grasso payout

US legislators are likely to question Securities and Exchange Commission chairman William Donaldson about New York Stock Exchange chairman Richard Grasso's $US140 million ($A211 million) salary payment, a day after pension funds that control more than $US400 billion called on Mr Grasso to quit.

Full story: http://www.theage.com.au/articles/2003/09/17/1063625091258.html

Treasurer at Enron gets five years' jail

Enron's former treasurer has become the first executive involved in the conspiracy that shook corporate America to be sent to jail as prosecutors moved in on top directors.

Full story: http://www.smh.com.au/text/articles/2003/09/11/1063268515228.htm

WORLD WIDE WEB

Muckraking

If you are looking for information on corporations for an activist campaign, investigative article, lawsuit, socially conscious investment, or a school paper, the Corpwatch interactive guide takes you through the steps of researching a corporation on the Internet. The guide shows how to find information about a corporation's business strategy and operations, financial status, and environmental and social record.

Available at: http://www.corpwatch.org/

SATIRE

Some cheesy humour to get you through the day...

1. A worker who was being paid by the week approached his employer and held up his last paycheck. "This is two hundred dollars less than we agreed on," he said.

"I know," the employer said. "But last week I overpaid you two hundred dollars, and you never complained."

"Well, I don't mind an occasional mistake," the worker answered, "but when it gets to be a habit, I feel I have to call it to your attention."

2. If a train station is where the train stops and a bus station is where the bus stops, what is a work station?

3. It is difficult to get a man to understand something when his salary depends upon his not understanding it.

4. Four-word story of employment: Hired, tired, mired, fired.

5. "Do you believe in life after death?" the boss asked one of his employees.

"Yes, Sir." the employee replied.

"Well, then, that makes everything just fine," the boss went on. "After you left early yesterday to go to your grandmother's funeral, she stopped in to see you."

6. Negotiations between union members and their employer were at an impasse. The union denied that their workers were flagrantly abusing their contract's sick-leave provisions.

One morning at the bargaining table, the company's chief negotiator held aloft the morning edition of the newspaper, "This man," he announced, "called in sick yesterday!" There, on the sports page, was a photo of the supposedly ill employee, who had just won a local golf tournament with an excellent score.

A union negotiator broke the silence in the room. "Wow," he said. "Think of what kind of score he could have had if he hadn't been sick!"

For further information

Contact:   Chris Owen
Email:   c.owen@labor.org.au
WWW:   www.bosswatch.labor.net.au