Advertisement
However, he said Australians tended to be reluctant to remove underperforming directors when companies lost their way, noting only about five have been removed from office in non-takeover situations over the past 15 years.Credit:“We’re very accepting of mediocre board performance until there is a massive crisis, and then it’s all the board’s fault. Boards don’t matter until they do,” said Paatsch. “And when they do, you really want them to be decisive and open and honest and clean up the mess.
In 2022, non-executive ASX 100 board directors were paid $274,936 on average, up from $267,933 in 2021. The average pay of ASX 300 chairs had the greatest increase, to $207,192 in 2022 from $190,278 in 2021.The number of independent directors with no “skin in the game” – that is, personal investments in shares that brings them in alignment with shareholders – remains “disappointingly” high: 50 ASX 100 directors, 72 ASX 200 directors and 86 ASX 300 directors have no skin in the game.
There are no laws that impose limits on how long a director can serve. “You can sit on [a board] in perpetuity,” said Paatsch.