The Australian Shareholders' Association wants companies to disclose how its CEO's pay compares to that of an average Australian as part of a push for improved reporting of executive remuneration.
Proxy shareholder groups such as ASA have been encouraging an investor backlash against rising executive pay at large companies, even as lower profits have frequently resulted in a sharp cut in dividends.
Last year, more than 100 ASX listed companies earned a "first strike" - a vote of at least 25 per cent by shareholders - against their remuneration reports.
They are at risk of a potential board spill if they receive a second warning this year.
AGL Energy, Woodside Petroleum and Boral are among the major companies included in that list.
ASA said on Thursday it will urge companies to this year include a table of actual take-home pay in their remuneration report, and also voluntarily disclose a ratio of the CEO's actual remuneration against average weekly total earnings figures provided by the bureau of statistics.
"Disclosure of a CEO pay ratio provides greater transparency and would enable shareholders to have a better understanding of where a particular CEO's take-home pay lies relative to the take-home pay of the average Australian," ASA chief executive Judith Fox said.
The take-home pay for CEOs of the top 200 listed companies is often quite different to the statutory pay declared in annual reports, due to the awarding of rights to shares and long-term bonuses.
ASA will also be asking companies to provide more meaningful disclosure on performance measures and vesting outcomes for short-term incentives.
Another focus area for the group will be fairness in capital raisings, to ensure retail shareholders get adequate time to participate equitably in capital raisings, and they are structured to reduce the extent of dilution of retail share holdings.
It named recent share raisings by Macquarie Atlas Roads and Tassal Group, which set aside allocations of less than 10 per cent and 25 per cent respectively for retail shareholders.
"Companies should offer shareholders the ability to subscribe for up to $15,000 of shares under the share purchase plans, which is the maximum limit allowable under the relevant rules, and not scale back any applications," Ms Fox said.
