Australia's prudential regulator said on Thursday it was looking to revise some terms on executive pay policies of the country's large banks, retirement funds and insurers it proposed last year after the fallout from a government-backed inquiry.
The Australian Prudential Regulation Authority (APRA) said it plans to reduce the minimum deferral period for chief executives' variable long-term bonuses to six years, compared with seven years it had proposed earlier. (https://bit.ly/2It2Jls)
The regulator also said it would look to replace a cap intended to limit the importance of financial performance in defining variable pay and streamline remuneration requirements for smaller firms.
The APRA had set out its initial proposed new remuneration rules in July last year in the aftermath of a Royal Commission into the financial sector in 2018 that blamed flawed incentives for widespread wrongdoing in the industry. (https://bit.ly/35oCk1o)
The regulator said on Thursday the consultation period for the updated proposals will close on Feb. 12, 2021, and it expects to finalise the new policies by mid-2021.
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Aditya Soni)
