The current spate of Australian corporate collapses highlights some of the complexities surrounding the determination of executive pay. This is particularly so in an environment where Corporations Law requirements mean that executive remuneration is clearly in the public arena. The last fifteen years have seen Australia follow the USA in providing a growing emphasis on short- and long-term variable pay. This paper reviews some of the major issues related to this change in executive pay structure, with specific reference to current trends in the design and operation of short- and long-term incentive plans. The authors conclude by proposing four principles that should underpin the planning and management of executive remuneration in listed Australian companies.