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Why the two strikes rule on executive pay is so controversial

Why the two strikes rule on executive pay is so controversial

Directors and investors are divided over whether Australia’s unique shareholder power, the so-called two strikes rule on executive pay, actually works.

Allan Fels (left) has rejected calls to scrap the two strikes rule. Directors such as Neil Chatfield (Aristrocrat), Michael Chaney (Wesfarmers) and Kathleen Conlon (Pilbara Minerals) have weighed in on the future of the rule. 

The architect of the so-called “two strikes” rule on executive pay, Allan Fels, has warned against moves to water down the shareholder vote on remuneration, despite business groups and leading company directors claiming it has passed its use-by date and should be scrapped.

Fifteen years after it was introduced by federal Labor after the global financial crisis, the governance rule remains divisive.

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Patrick Durkin
BOSS deputy editorPatrick Durkin is Melbourne bureau chief and BOSS deputy editor. He writes on news, business and leadership. Connect with Patrick on Twitter. Email Patrick at pdurkin@afr.com
Sally Patten
BOSS editorSally Patten edits BOSS, and writes about workplace issues. She was the financial services editor and personal finance editor of the AFR, The Age and the Sydney Morning Herald. She edited business news for The Times of London. Connect with Sally on Twitter. Email Sally at spatten@afr.com

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Original URL: https://www.afr.com/work-and-careers/management/push-to-scrap-two-strikes-rule-rejected-by-architect-20251120-p5ngzu