Work Shy? Or Just Plain Stupid?

A recent study by Ernst & Young found that a lot of directors still don't get the fact that strong governance is a prerequisite for their job. The majority of those directors surveyed argued they ought to get a pay rise to compensate for increased governance requirements. Do they realise at all that these requirements work to protect their own backsides, the value of their own shares, the hip pocket of the investors who pay them and the livelihoods of the workers that make it all happen? Or, are they just scared of a bit of extra work?

PICKS OF THE WEEK

Directors put case for pay rise

Directors say they need to be paid more because of increased risks and responsibilities under the new corporate governance regime, according to a survey.

Full story: http://www.theage.com.au/text/articles/2003/10/28/1067233172831.htm

Options reworked as Coles takes stock

An embarrassed Coles Myer yesterday toughened performance hurdles on a proposed options package for chief executive John Fletcher, after strong criticism from shareholders annoyed by a lack of consultation.

Full story: http://www.theaustralian.news.com.au/common/story_page/0,5744,7708287%255E643,00.html

Seven chief in line for extra 3m options

Seven Network shareholders will next month be asked to cement the options deal for chief executive David Leckie that is already $2 million in the money.

Full story: http://www.theage.com.au/text/articles/2003/10/28/1067233172834.htm

CommBank's $19m gambling fraud

The extraordinary story of a bank manager seduced by an insatiable addiction to gambling and the online bookmaker that made it possible.

Full story: http://www.crikey.com.au/whistleblower/2003/10/27-0009.html

NAB boss may get $10m a year

National Australia Bank chief executive Frank Cicutto could earn up to $10 million a year in salary and shares if he hits all his performance goals under a three-year contract signed by the bank's board yesterday.

Full story: http://www.smh.com.au/text/articles/2003/10/23/1066631570422.htm

It's lies, lies and damned contracts

Dishonest companies could be fined up to $120,000 for misrepresentation in advertising under legal changes that also aim to stamp out unfair clauses in consumer contracts.

Full story: http://www.theage.com.au/articles/2003/10/29/1067233246735.html

Union kicks Blundstone for giving workers the boot

The Footwear Union says it is disappointed Blundstone plans to cut around 20 jobs from its Hobart factory and is not offering voluntary redundancies.

Full story: http://au.news.yahoo.com//031029/21/maq7.html

ASIC seeks feedback on fair-advice proposals

Companies that offer financial advice are being asked to consider the potential impact of laws proposed to ensure investors are advised fairly and truthfully.

Full story: http://www.smh.com.au/articles/2003/10/29/1067233247303.html

Few CFOs ready for accounting changes

Just 3 per cent of Australia's chief financial officers are confident they have come to grips with impending changes to the way companies report their accounts.

Full story: http://www.smh.com.au/articles/2003/10/29/1067233248442.html

Senior ACCC man quits

The nation's competition watchdog will lose one of its most senior commissioners after Sitesh Bhojani yesterday confirmed he would depart the Australian Competition and Consumer Commission next month.

Full story: http://www.smh.com.au/text/articles/2003/10/27/1067233096742.htm

INTERNATIONAL

Google's online float threatens to derail gravy train

The news that Google Inc is considering floating with minimal use of investment bankers, as reported by the Financial Times, sent a 7.2 Richter scale tremor up Wall Street over the weekend.

Full story: http://www.smh.com.au/text/articles/2003/10/27/1067233099809.htm

Sony to cut 20,000 jobs over three years in "Transformation 60" plan

TOKYO (AFP) - Japan's Sony Corp. said it would cut 20,000 jobs over three years as part of a move to trim costs and converge its media, entertainment and electronics businesses ahead of its 60th birthday in 2006.

Full story: http://au.news.yahoo.com//031028/19/ma1j.html

Cadbury cuts jobs and calories

Cadbury Schweppes plc plans to cut 5500 jobs and shut factories after a £4.9 billion ($A11.9 billion) acquisition spree over the past three years inflated costs.

Full story: http://www.theage.com.au/text/articles/2003/10/27/1067233104805.htm

Bundesbank to cut a quarter of its workforce

FRANKFURT (AFP) - The Bundesbank is to follow the lead of the Bank of France, currently in the throes of a painful restructuring, and cut its workforce by a quarter, or around 3,800 jobs in all, a central bank spokesman said.

Full story: http://au.news.yahoo.com//031028/19/ma0h.html

Oil magnate faces fraud, tax charges

Russia's wealthiest man and the head of oil giant Yukos, Mikhail Khodorkovsky, was in a Moscow prison yesterday facing massive fraud and tax evasion charges. Prosecutors described the case as unprecedented.

Full story: http://www.theage.com.au/text/articles/2003/10/26/1067103267023.htm

Extravagant Tyco birthday party video cut

The most salacious scenes in the video of Dennis Kozlowski's multimillion-dollar birthday party for his second wife on the island of Sardinia were ordered cut on Monday from a version to be shown to jurors in the trial of Kozlowski, who is accused of helping loot Tyco International of $US600 million ($853 million).

Full story: http://www.smh.com.au/text/articles/2003/10/28/1067233177998.htm

THE $3 MILLION EXECUTIVE SALARY CLUB FOR 2002 AND 2003

Care of Stephen Mayne, founder of Crikey.com

$35m, Sir Robert Wilson, retired Rio Tinto chairman

$30m, Brian Gilbertson, ousted BHP-Billiton CEO

$25.7m, Peter Chernin, News Corp CEO

$21m, Rupert Murdoch, News Corp executive chairman

$21m, Hugh Morgan, retired WMC CEO

$13.4m, Frank Lowy, Westfield executive chairman

$11m, Peter Kirby, outgoing CSR CEO

$8m, David Higgins, sacked Lend Lease CEO

$6.49m, Wal King, Leighton CEO

$6.18m, Keith Lambert, Southcorp CEO

$6.1m, Miklos Salomon, BHP deputy CEO

$6.1m, Tom Fraser, axed AMP UK boss

$5.9m, Allan Moss, Macquarie Bank CEO

$5.79m, Michael Chaney, Wesfarmers CEO

$5.6m, Steve Jones, ousted Suncorp CEO

$5.2m, Chip Goodyear, new BHP CEO

$5.2m, Russell Jones, Amcor CEO

$5.2m, Brian McNamee, CSL CEO

$4.34m, John Fletcher, Coles Myer CEO

$4.3m, Nicholas Moore, Macquarie investment banking chief

$4.25m, Luther Cochrane, sacked chairman of Bovis Lend Lease

$4.1m, Sir CK Chow, Brambles CEO

$4m, Peter Lowy, Westfield America boss

$4m, Roger Yates, AMP Henderson

$3.97m, Peter Macdonald, James Hardie

$3.92m, Andrew Mohl, AMP

$3.86m, Andrew Downe, Macquarie Bank treasury boss

$3.77m, John Alexander, PBL Media chief

$3.77m, Steven Lowy, Westfield Trust CEO

$3.76m, Peter Yates, PBL CEO

$3.7m, John Mulcahy, Suncorp Metway CEO

$3.65m, Roger Corbett, Woolworths

$3.58m, Rod Pearse, Boral CEO

$3.57m, Bob Avery, Onesteel CEO

$3.42m, Bill Moss, Macquarie property boss

$3.4m, Kirby Adams, BHP Steel CEO

$3.27m, Tim Wade, AMP International

$3.18m, Dawn Robertson, Myer Grace Bros chief

$3.02m, Les Owen, Axa Asia Pacific

FAMOUS INSULTS

"Why are we honoring this man? Have we run out of human beings?"

Milton Berle

"You're a parasite for sore eyes."

Gregory Ratoff

"There's nothing wrong with you that reincarnation won't cure."

Jack E. Leonard

"I've had a perfectly wonderful evening. But this wasn't it."

Groucho Marx

"I didn't attend the funeral, but I sent a nice letter saying I approved of it."

Mark Twain

"I feel so miserable without you, it's almost like having you here."

Stephen Bishop

"He is simply a shiver looking for a spine to run up."

Paul Keating

For further information

Contact:   Chris Owen
Phone:   (02) 9264 1614
Email:   c.owen@labor.org.au
WWW:   www.bosswatch.labor.net.au