Australia Post CEO will get $4.3m retirement payout

AUSTRALIA Post’s $5.6 million-a-year CEO has not only earned around $23 million to date — he will be eligible for a whopping retirement payout.

Australia Post chief executive Ahmed Fahour. Picture: Stuart McEvoy

AUSTRALIA Post’s $5.6 million-a-year CEO has earned around $23 million to date in his six years in the top job, and will be eligible for a whopping $4.3 million retirement payout.

Ahmed Fahour’s $4.4 million salary and a $1.2 million bonus, which the government-owned business wanted to keep secret, were revealed in documents released by a parliamentary committee this week.

The Australian reports that under an Australia Post defined benefit retirement scheme — which Mr Fahour shut to new entrants in 2012 — he will be entitled to a lump sum of at least $4.3 million after he leaves the organisation.

But he won’t be able to get his hands on the cash until his 60th birthday in October 2026. “This one-off lump sum is based on the employee’s final ­average salary, multiplied by the years of service, multiplied by a defined benefit rate of 14.3 per cent,” an Australia Post spokesman told the paper.

The revelation comes after widespread criticism from Prime Minister Malcolm Turnbull down. Mr Turnbull told reporters on Wednesday that Mr Fahour’s remuneration package was “too high” and that he had spoken to the Australia Post board chair.

“This is not a decision of the government,” Mr Turnbull said. “I’ve spoken to the chairman today. I think that salary, that remuneration is too high. Now, it’s a matter for the board. I think it is too high. I know it is a big job. It is a big company. The company has been able to improve its position.

“But in my view — and I say this as someone who spent most of his life in the business world before I came into politics — I think that is a very big salary for that job.”

Communications Minister Mitch Fifield told Senate question time on Thursday he had urged the board to give more rigorous consideration to remuneration packages and be conscious of community expectations.

“And that the board takes executive remuneration into account when seeking to reduce operational costs,” he said.

Australia Post chairman John Stanhope will be hauled before a Senate committee to justify his chief executive’s salary.

He earlier told The Australian there had been “no intention to try and hide anything”. “We’ve reported it every year as required. It did change in 2015 when the requirement was to do it by individual,” Mr Stanhope said.

“We’re not trying to hide anything. We are reporting as we are required to report. The Senate asked questions on notice and we responded and gave them all the information.”

In a statement on Wednesday, an Australia Post spokeswoman said: “The remuneration of the executive team, including the Managing Director and Group CEO, is set by the Australia Post Board.

“Mr Fahour’s total remuneration package takes into account the size and complexity of the organisation, which has an annual turnover of more than $6 billion. It also reflects the large-scale transformation under way and that more than 73 per cent of its revenue comes from the non-regulated side of the business where it is competing with major global players such as DHL, FedEx and Toll.

“Mr Fahour’s remuneration in FY16 included a performance-based short-term bonus in line with Australia Post returning to profit. The previous year he did not receive a bonus.

“Total executive remuneration has not increased since 2014 when the executive last received their full eligible performance bonus. Since 2007 Australia Post has paid more than $6.3 billion in dividends and taxes to the Federal Government. Australia Post does not receive any taxpayer funding.”