SIR C. K. CHOW, chief executive of Brambles Industries, has halved his notice period to comply with new executive pay guidelines.

Brambles, the world’s biggest supplier of forklift pallets, announced yesterday that it had agreed the change with Sir C. K.

If Sir C. K. is ousted from his Sydney-based job he will now receive one year’s remuneration, not two. That includes basic pay and bonuses.

Last year Sir C K was paid a salary of A$2,558,000 (£1 million) and a A$540,000 performance bonus. He also received a relocation allowance of A$195,000 when he moved from the UK to Sydney after the 2001 merger of GKN’s pallet business with Brambles.

“When Sir C. K. moved to Australia he took his family and he wanted a bit of security,” a source close to the company said. “Now that two years have passed he is more comfortable with his position and Brambles are moving back in line with industry best practice.”

Following governmental and public pressure, the City has sought to eliminate massive payouts to failing chief executives.

Under proposals drawn up by Derek Higgs, senior executives will now be expected to have contracts that last no longer than one year.