Australian Bankers' Association comments on Executive Remuneration report

Sydney, 30 September, 2009: The Australian Bankers’ Association (ABA) said the Productivity Commission’s report “Executive Remuneration in Australia” is very well researched and, as a result, reaches balanced conclusions and policy proposals.
 
The ABA said the community is fortunate to have an economic research organisation that can produce quality work in a very difficult public policy environment.

David Bell, Chief Executive of the ABA, said: “Our starting point has always been that a company board should primarily determine an executive’s remuneration, and be accountable for that responsibility.”

“More generally, Australian bank boards have done a good job. While it is a case that executive salaries in some US and UK financial institutions may have contributed to excessive risk-taking and are inconsistent with performance, we see no evidence to suggest that this has been the case in Australia.”

“Australian banks are amongst the most secure in the world – Australia currently has four of only ten AA–rated banks in the world.”

The ABA will consult with its members on the report and prepare a submission for the next round of consultation.

For further information:

Heather Wellard
Director, Public Relations,
Phone: 02 8298 0411
Mobile: 0409 830 439
           
ENDS