The boom in private equity is creating a new scam in executive pay. In many of these deals, bosses sell out to private equity and pick up millions in so-called change of control provisions, and then continue running the business.

The scam is explained in full detail in this report from Bloomberg's David Pauly.

But an interesting development in Australia could set an example for other companies. The case involves the sale of Australia's iconic airline Qantas to a private equity consortium.

The airline's chief executive Geoff Dixon and other executives will get one per cent of the equity in the airline. He will also get up to $A60 million ($US$47 million) under a long-term incentive scheme but has said he won't see a cent of it because he has arranged to put the money into a charitable trust. I look at that development in my piece here.

Simon Longstaff, executive director of the St James Ethics Centre in Sydney told me Dixon's decision sends a message to other companies around the world, particularly with the Qantas board keeping Dixon out of the negotiation process and doing its best to try to minimise the obvious conflicts of interest.

"It sets a benchmark, not just within Australia, but I hope around the world as to how you ought to respond appropriately to try and try and prevent the kind of ethical mischief one encounters in North America and other places.

"The board not only protected the company but it allowed Geoff Dixon to make a genuine philanthropic contribution without having to worry about these other issues."