Fat cat energy bosses pocket $15k per day as power bills spike

The bosses of the major energy retailers are earning up to $15,000 a day. When Aussies’ power bills are due to increase again, “it is not a good look”.

As the Reserve Bank prepares to raise interest rates again on Tuesday and warns that energy prices could increase by up to 18 per cent the bosses of the major energy retailers are earning more than $15,000 a day.

The bumper pay days for the bosses of AGL, Origin and EnergyAustralia have been condemned for being out of touch with the belt tightening experienced by the majority of Australians.

“At a time when everybody else is suffering from higher energy prices, the bosses of the energy companies are doing very, very well,” Australia Institute senior researcher David Richardson said.

“Everybody has heard about upsets in the energy markets but it does not seem to have affected the bosses‘ pay.”

AGL’s outgoing chief executive Graeme Hunt trousered a whopping $2.2 million pay packet last year which equates to almost $6000 a day. The four members of the executive group cleaned up $7.5 million between them – more than $20,000 a day.

Outgoing CEO of AGL Graeme Hunt was paid $2.2 million last year. Picture: Aaron Francis/The Australian

EnergyAustralia’s former chief executive Catherine Tanna took home almost $6 million to clear more than $15,000 a day. Details on her replacement Mark Collette’s full pay are not available but before long-term incentives he pocketed $1.3 million.

And Origin Energy chief executive Frank Calabria has seen his pay increase by $333,000 to almost $5.5 million, which equates to more than $15,000 a day.

EnergyAustralia’s former CEO Catherine Tanna earned almost $6 million. Picture: AAP Image/Peter Rae

While Origin Energy’s Frank Calabria has seen his pay increase by $333,000 to almost $5.5 million. Picture: Justin Lloyd

Research conducted by Vinnies has found that electricity customers are facing a jump in bills of between 10 and 15 per cent with the cheapest electricity deal now $500 more than just a year ago.

“It is not a good look when the CEOs of the energy companies are getting huge salaries while battlers are facing energy premiums,” Vinnies policy and research executive manager Gavin Duffy said.

“It would suggest they are out of step with the rest of Australia.”

An AGL spokesman said: “Electricity prices are regulated by the Australian Energy Regulator and Victoria’s Essential Services Commission and are not directly linked to CEO pay.

“We’re acutely aware of consumer and business energy prices in the current environment and we understand the additional pressure these can place on some households and businesses. We encourage customers to contact us to discuss the different payment and support options we offer.”

A spokeswoman for EnergyAustralia said: “There is strong competition for experienced CEOs – particularly in energy companies – around the world.

“Mark’s pay is at the lower end of CEOs of similar-sized companies including the majority of the ASX 200.”

An Origin spokeswoman said the CEO’s 2.7 per cent pay rise had been benchmarked to similar roles and reflected a diverse energy business.

“There is no correlation between electricity prices and executive remuneration,” she said. “Electricity prices increased this year primarily due to the rising wholesale cost of energy, which has been impacted by volatile global commodity prices following the Russian invasion of Ukraine and domestic factors including coal plant outages.

Originally published as Fat cat energy bosses pocket $15k per day as power bills spike