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Thursday, 28 April 1932

Mr GREGORY - Would it not be wise to make the chairman of the board the chief executive officer?

Mr BRUCE (FLINDERS, VICTORIA) - I do not think so. No government could have the same intimate knowledge of the business of broadcasting as would be possessed by a properly constituted board of directors, and consequently, the board would be the better fitted to appoint the right person as chief executive officer. I do not consider that the remuneration to be paid to members of the board should be high. For thi* chairman of a board of directors of over big enterprise £500 per annum is large payment, and £1,000 per annum is unusual. I have been a director of a great number of companies, and the maximum I have received in that capacity is £300 per annum. That was the amount T received as a director of the National Mutual Insurance Company, one of the biggest insurance companies in Australia.

Mr Thompson - What did the chairman receive?

Mr BRUCE (FLINDERS, VICTORIA) - He was paid about £500 per annum.

Mr Maxwell - What demand on the right honorable gentleman's time did his position as director make?

Mr BRUCE (FLINDERS, VICTORIA) - I was expected to attend all board meetings. In controlling a service of this kind we must have either a board of part time directors, to determine the broad policy to be followed, leaving it to the chief executive officer to carry out that policy, or a board of directors to actually manage the concern themselves. If the latter system is adopted we must pay the members of the board high salaries. But in my opinion, we shall get the best results by adopting the proposal embodied in the bill, paying relatively good fees to members of a board of directors to determine the broad lines to be followed, and leaving the carrying out of their policy to the board's executive officers, the latter to be men receiving high salaries because of their qualifications for the positions they hold.

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