Last week the Prime Minister criticised excessive bank executive pay in the light of the financial crisis. (The Australian). What could he have in mind?
It’s worth looking at The US Emergency Economic Stabilization Act of 2008 which includes a number of provisions relating to executive compensation.
In this post by Jeremy L. Goldstein of Wachtell, Lipton, Rosen & Katz, he focusses on Severance Agreements for executives of financial institutions that fail.
In Australia this could either be regulated by the termination remuneration provisions in the Corporations Act or in amendments to the Banking Act.