Child care boss’s mammoth payday, while you fork out more

As childcare costs spiral beyond the means of many parents, the Queensland-based boss of one of the nation’s biggest providers just took a pay rise bigger than the average full-time wage.

WHILE parents scrape together the cash to send their children to child care, the boss of one of the industry’s biggest providers has just accepted a $100,000 pay rise.

From January 1, Gold Coast-based G8 Education’s CEO Gary Carroll salary reached $840,000, including superannuation, after a review of his pay saw it significantly boosted, the organisation’s annual report revealed.

On top of that he will be receiving a healthy bonus.

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It follows The Courier-Mail revealing the average cost of childcare had risen $302 a year, or up to $480 a year for parents with children in care 48 weeks a year.

The huge pay packet and pay rise has been slammed as being out of touch with community expectations, particularly given the industry is taxpayer subsidised, while Labor’s early education spokeswoman Amanda Rishworth said “parents have a right to be angry”.

G8 Education CEO Gary Carroll is taking home $840,000 a year plus bonuses.

G8 operates a range of brands, including World of Learning, The Learning Sanctuary, Community Kids, Kindy Patch and Kool Kids.

In the 2018 financial year Mr Carroll took home $760,290 and a $145,000 bonus payment taking his total salary to $905,290.

It is well in-excess of the Prime Minister’s salary of about $540,000, while the pay rise is higher than the average full-time yearly wage of $82,000.

As his pay soared, the company’s profits dropped in the 2018 calendar year from $80 million to $71 million.

By comparison, not-for-profit Goodstart Early Learning’s nine executives still took home an average of $355,222 in the 2018 financial year, which was a 2 per cent increase.

Smaller child care provider C&K pays its nine executives an average of $167,000, while KU Children’s Services’s seven executives are paid an average of $252,000 a year, both based on the most recent annual report from 2017.

Child care bosses are taking home big salary packages, while parents are paying more. Picture: Derek Moore

A G8 Education spokeswoman said: “The Board sets the remuneration package for the Chief Executive Officer and other executive leaders using independent expert advice and utilising market benchmarks in line with businesses of comparable size and complexity.”

Ms Rishworth said the pay rise and salary were not within community expectations.

“Whilst it is up to these companies to justify to parents and educators the pay rises they are giving to their CEOs, parents and educators have a right to be angry,” Ms Rishworth said.

“Families are paying more than ever for child care, and educators are among the lowest paid workers in the community.”

Ms Rishworth said it was “unacceptable” for providers to give executives massive pay rises while the Commonwealth spent $8 billion a year on the sector.

Federal Education Minister Dan Tehan declined to comment.

Childcare CEO salaries

Goodstart Early Learning: nine executives, including CEO Julia Davison, paid an average of $355,222 each (source: 2018 annual report)

KU Children’s Services: seven executives, including CEO Christine Legg, paid an average of $252,140 each (source: 2017 annual report)

C&K Childcare: nine executives, including CEO Michael Tizard, paid an average of $167,000 each (source: 20178 annual report)