The Shareholders' Association is calling for simplified, clearer and more comprehensive reporting of chief executives' pay packages.
"We're fans of full and detailed remuneration reports - total disclosure," says chairman Bruce Sheppard.
Many listed companies include complex share options that can make working out a chief executive's pay difficult.
ShareholdersAssociation corporate liaison Des Hunt says companies with the highest-paid chief executives have tended to make their salary packages the most difficult to work out. "It should just be simple and basic."
One example of this complexity can be found in PGG Wrightson's annual report, in which managing director Tim Miles' total remuneration, including its components, is clearly stated.
However, tucked away in the financial notes are the details of Miles' long term incentive, which enables him to use a $5 million interest-free loan to buy 2.5 million shares in the company in five annual tranches.
The loan can then be "written off pro rata", the report says, in $1 million instalments provided Miles meets his performance criteria.
Essentially, the loans given to buy the shares will be wiped if he meets his performance targets. No information is given over whether or not he reached his targets and received any shares, or what the performance criteria were.
Miles says he has not yet received any of the shares, as reaching his performance targets had been impossible over the past two years, given the economic environment. PGG Wrightson reported a $66.4 million loss in the last financial year.
Sheppard says the criteria CEOs must meet for performance pay should be published in annual reports.
