Scott's latest article in the Eureka Report looks at the prickly issue of executive remuneration packages.  Removing ourselves from the debate around fairness, Scott cuts to the heart of the issue for investors - What is the impact on share price?

In his article Scott conducts analysis on 3 household company names - Commonwealth Bank. Telstra and Qantas to look at the impact of reducing executive pay levels.  He concludes:

"The calculations for Qantas, Commonwealth Bank and Telstra show that big salary packages to affect earnings and share prices, but not to a great level. Indeed, if a highly skilled executive were able to increase shareholder return by 1% a year, they would justify the paying of a high salary.

The more interesting story is that of the Productivity Commission recommendations and its recommendations to give shareholders more power to vote on executive remuneration, recommendations supported by the shareholders' association.

Moves away from continued salary increases well in excess of inflation, to genuinely involving shareholders (company owners) in the remuneration process, would seem to be a step in a positive direction."

Please click on the following link to be taken to the article - Why executive pay doesn't matter (to shareholders).