Shock pay rise for energy CEO while Aussies struggle
A federal government-owned energy company increased the pay to its CEO amid a cost of living crisis, as a survey shows how little Australians now trust their energy companies.
National
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As many households battle to pay for power, a federal government-owned company with 1.4 million energy customers has awarded the boss of its retail businesses a 26 per cent annual pay rise — worth nearly $350,000.
The CEO of Red Energy and Lumo, Iain Graham, earned $1.69 million in 2023-24, up from $1.34m in the previous financial year, according to the annual report of their parent company, Snowy Hydro.
Mr Graham’s base pay rose from $670,000 to $1.1m. His earnings from long-term bonuses also increased, as did his long-service leave. Short-term bonus payments declined slightly from $400,000 to $340,000.
The pay jump coincided with Snowy’s retail revenue increasing by a fifth to nearly $3 billion. This was in part driven by a lift in customer numbers by about 120,000 to 1.4m, along with price rises of 19 to 25 per cent across the country – hikes that were mirrored at other power providers.
Mr Graham’s colleagues in the Snowy Hydro executive team also enjoyed big bumps in earnings.
Chief financial officer Kim Josling’s pay went up by 25 per cent to $1.14m, while chief commercial officer Gordon Wymer received an extra 17 per cent, taking his pay to $1.55m.
Snowy Hydro’s CEO Dennis Barnes was paid $3m last financial year. He only joined in February 2023, so a percentage increase in his earnings cannot be calculated.
Appearing before a Senate Estimates hearing last week, Snowy Hydro’s Mr Barnes said base pay for top management in 2024-25 had been determined and would only rise by two to four per cent.
A Snowy Hydro spokeswoman said its “executive remuneration is set by the independent board of directors, in line with the market for comparable executive roles, but taking into account expectations regarding remuneration for government business enterprises.”
Snowy Hydro’s electricity business is the fourth-largest retailer in some parts of Australia, after Origin, AGL and EnergyAustralia.
This masthead has previously revealed Chinese-owned EnergyAustralia’s CEO Mark Collette was paid about 45 per cent more in 2023-24, taking his salary to $2.8m.
The largest of the power businesses, Origin Energy, signed off a $700,000 increase to chief Frank Calabria, bringing his earnings to $5.6m.
Asked about the Snowy Hydro pay jumps, advocacy group Energy Consumers Australia chief Brendan French said power customers think the sector is failing them.
“Our most recent Energy Consumer Sentiment Survey shows more than half of households say they are either under financial pressure or managing to afford household bills but struggling to afford anything else,” Dr French said.
“Australians now trust their energy companies less than telcos, banks and supermarkets — this is a clear sign that consumers think the sector is failing them.
“What we’re seeing at the moment is that there are costs the whole way along the energy system, and they all funnel down to consumers, who are doing it tough,” Dr French added.
“The solution to this needs to be market-wide. We want to see the cheapest possible generation, the least possible transmission, the most efficient networks, oversight of retailer profits and better consumer protections.”
At the Senate hearing, Mr Barnes declined to disclose Red and Lumo’s profits.
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