'Two-strikes' rule on executive pay hits directors

Companies could soon feel the real impact of the "two-strikes" law on executive pay, as directors face up to shareholders at annual meetings this month.

More than 500 directors sitting on 108 public company boards face the possibility of being ejected from their positions, Chartered Secretaries Australia has warned.

BlueScope Steel, Crown, Pacific Brands and Perpetual are some of the bigger names facing a "second strike", which could trigger a spill and force the re-election of the entire board.

But whether a first strike — issued at last year's AGMs off the back of the introduction of the law — has been enough to change company behaviour and improve corporate responsibility is unclear, with some observers saying executives of poor-performing companies are still doing far too well for themselves.

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