In its second round of consultation on remuneration policies APRA has made the following responses to submissions on its initial draft standards:
- APRA is now proposing that the composition of the Board Remuneration Committee be consistent with that of the Board Audit Committee. This entails that all members be nonexecutive directors with a majority independent and an independent chair, rather than all members needing to be independent directors.
- The definition of ‘risk and finance control personnel’ to whom the standard applies has now been modified to refer to those personnel whose roles are primarily related to risk or financial control.
- The draft standards now better reflect APRA’s intention that, beyond the responsible person cadre, prudent remuneration arrangements are intended to be established for classes of personnel rather than at the individual level.