Executive Greed 'has To Cease'
Sydney Morning Herald
Saturday September 27, 2008
THE Treasurer, Wayne Swan, has urged shareholders to target overpaid executives and signalled greater regulation of unscrupulous mortgage brokers.
As the global financial crisis ignites fresh debate about the remuneration of company executives, Mr Swan told the Herald he was not inclined to impose a formal cap on executive salaries.However, it was true that, in both Australia and in the US, executives had received handsome payouts for dubious work."I think there are a lot of executives that have made a lot of money out of a lot of people's misery, and that sort of greed ought to be dealt with."While politicians in the US have called for a legislative cap on executive salaries, Mr Swan said it was not the role of government to dictate private-sector pay. "The people that ought to bring that up are the shareholders."He also endorsed analysis by the Reserve Bank that revealed the western suburbs of Sydney have been hit hard by predatory lenders and unscrupulous mortgage brokers. "It's not only western Sydney, there are other parts of the country where it's got a head of steam. Banks found it very convenient to outsource some of their lending." Mr Swan said there were plans to transfer responsibility for credit regulation from the states to the Federal Government. But the body representing mortgage brokers, the Mortgage and Finance Association, insisted they were not to blame."Mortgage brokers are not responsible for the increase in mortgage arrears, as it is the responsibility of the lender to approve home loans recommended by a broker," said Phil Naylor, the head of the association.
© 2008 Sydney Morning Herald