Directors’ perks under pressure

The Australian Institute of Company Directors has criticised incentive schemes, options and retirement allowances offered to non-executive directors of publicly listed companies. the Institute says such schemes have the potential to bias judgment and influence independence and shareholders generally hear about these schemes after the event.

Retirement allowances for non-executive directors are rare internationally and the AICD Remuneration Taskforce said such schemes, other than superannuation, are not consistent with shareholders' best interests and should be phased out.