'Two strikes' falls foul

Shareholders are increasingly comfortable exercising their voice on executive pay. But the 'two strikes' rule is easily manipulated to leave them powerless.

Between 2000 and 2010, chief executive salaries in Australia’s top listed companies rose, on average, by 131 per cent. Meanwhile, median bonuses grew by a staggering 190 per cent. These are sobering figures, especially given that the average worker's pay rose by just 52.3 per cent in the same period. Shareholder returns fared even worse, with just a 31 per cent increase in returns recorded for the decade.

After years of watching from the sidelines as executive salaries grew by monstrous proportions, shareholders were last year rewarded with an amendment to the Corporations Act that gave them more power over executive pay – the 'two strikes' rule.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles