Three-year leeway on executive pay limits
All executive employment agreements for APRA-regulated entities must be fully compliant with the final standards on remuneration by March 2013, the financial regulator said yesterday.The final version of the standard tinkers with details of the draft in relation to international banks, and also provides more flexibility to pay guaranteed bonuses to new hires. The general tenor of the standard is to require boards to engage more actively with pay arrangements for senior staff, and to establish a board remuneration committee, and a remuneration policy - not that there would be many banks lacking the latter.The standard comes into force in April 2010.