Land developer Stockland will cut executive bonuses after a review of its remuneration policies.
The move comes amid renewed scrutiny over short- and long-term incentive packages offered to executives at Australia's top 100 companies.
Stockland, Australia's largest developer, began a review last year to "more closely align executive remuneration with the interests of securityholders" and to ensure the company's policies reflected best practice.
Managing director Matthew Quinn had agreed to receive no increase in fixed pay in fiscal 2013 while his maximum possible short-term incentive bonus had been reduced from 200 per cent to 125 per cent, the company said in a statement on Thursday.
However, there would be no change to Mr Quinn's reward pay mix of 34.5 per cent fixed pay and 65.5 per cent variable pay which is made up of short- and long-term incentives.
In fiscal 2011, Mr Quinn received a total of $5.3 million, including $1.9 million fixed pay, $2.2 million in short-term bonuses and $1.2 million in long-term bonuses.
Senior executives have also had their short-term incentive bonuses reduced from 200 per cent to 125 per cent and at least one third of any short-term incentives will be awarded in Stockland securities.
Changes to Mr Quinn's package are subject to securityholder approval at the company's annual general meeting (AGM) in October.
Recently introduced "two strikes" legislation gives shareholders the right to call for a re-election of non-executive board members if 25 per cent of shareholders vote against a remuneration package two years in a row.
Stockland said the total pool of short-term incentive bonuses available for all employees would not exceed five per cent of underlying profit.
But long-term incentive bonuses would continue to be assessed over three years and there would be no re-testing of long-term hurdles.
Chairman Graham Bradley said Stockland was confident its new remuneration policies would reflect best practice.
"The new arrangements agreed with the managing director under his ongoing terms of employment demonstrate Mr Quinn's strong commitment to Stockland and clearly reflect investor expectations that remuneration arrangements are appropriate and performance-based," Mr Bradley said.
The changes demonstrated that Stockland's executive pay was fair and competitive, and properly reflected management achievements to create value for securityholders, he said.
Key management personnel will continue to be required to maintain a minimum securityholding equal to two times fixed pay for the managing director and one times fixed pay for other executives for long-term incentive securities awarded after July 1, 2010.
In addition Stockland re-confirmed that fixed pay arrangements for key management personnel were set at market-referenced levels around the 50th percentile for the top 50 ASX-listed companies.
