warning a board spill for amp will irrapairably damage the brand, page-2

The two-strikes rule 'must go'
The two-strikes rule is giving shareholders too much power over the remuneration structure of listed companies and must be abolished, a former supervisor at the Australian Prudential Regulation Authority, Fahmi Hosain, has said.Mr Hosain urged whichever party emerged victorious from the May federal election to fix the problem, saying the controversial rule would prevent companies from making the necessary changes to the way executives are paid."This is one area where the government needs to act," he said. "Commissioner [Kenneth] Hayne said he could not put a recommendation on it because it was outside of his remit. Any changes in the two-strikes rule in his report would go beyond financial services. It would effect all listed companies."Under the two-strikes rule, when more than 25 per cent of shareholders vote down two annual remuneration reports in a row, it triggers a vote on a board spill that could result in the company's entire board of directors facing re-election.Mr Hosain said this gave shareholders an "enormous weight of influence in terms of voting down a remuneration report at AGMs"."[It's] their sole vehicle it seems to display displeasure with anything in the institution. Yet Commissioner Hayne is saying we’re also going to have to trial and error things around remuneration. I think that’s going to create conflict.