CEO pay revealed: Australian bosses cash in as pay soars above inflation and average workers
The average chief executive pay at some of Australia’s biggest companies has surged by an eye-watering amount as dozens rake in bumper bonuses | FULL LIST
Chief executives at some of Australia’s biggest companies have landed a financial windfall, with remuneration packages jumping nearly 20 per cent in the past fiscal year after a strong rise in bonuses and other incentives, according to annual reports.
Remuneration figures collated by The Australian from about 50 of the largest ASX-listed companies showed most CEOs received pay rises of more than four times the rate at which wages for full-time Australian workers increased over the 2024 financial year, despite the earnings season largely showing flat revenue and soft profits.
About 27 CEOs received double-digit percentage pay increases for the year, while the average statutory remuneration package – including base salary, short and long term incentives, and other bonuses – lifted by 19.3 per cent. Nineteen CEOs received total statutory earnings of more than $5m, with four having pay packets of more than $10m.
It comes as some of Australia’s highest-profile companies are set to report and disclose CEO pay this week
Coles, Woolworths, Qantas and Nine Entertainment are among those expected to face the most intense scrutiny. Insurance Australia Group chief executive Nick Hawkins saw his statutory pay soar 78.5 per cent to $5.23m, up from $2.93m a year earlier, as he earned $2.35m in short and long term incentives, compared to $543,000 in the previous period.
The insurer generated a 79.1 per cent jump in profit from its insurance division, driven by a surge in premiums.
Average weekly earnings for all Australian workers increased by 4.5 per cent to just under $1996.40 in the year to May, according to the latest figures released by the Australian Bureau of Statistics.
Despite their own pay rises, corporate leaders have in the past year highlighted pressures companies faced from the increasing cost of labour, which was leading to goods and services costing more.
One of the highest paid statutory earners so far this reporting season was Greg Goodman, chief executive of Goodman Group, who received a 5.7 per cent increase to $14.97m in 2024, according to the industrial property company’s annual report.
Australian Council of Superannuation Investors executive manager, stewardship, Ed John said while it was good fixed levels remained mostly unchanged, it was crucial that bonuses were linked to the delivery of exceptional performance.
“Investors do not want to see an ‘everyone wins a prize’ bonus culture emerge in Australian companies particularly when companies are so focused on productivity and performance,” he said.
“The numbers indicate that we could see a breakout in executive pay if Australian boards become complacent. It will be critical that boards ensure performance hurdles are closely monitored and set at the right levels.”
Mr John said some of the highest shareholder votes against remuneration reports in recent years had been the result of performance hurdles being set too low or boards shifting the goalposts when targets were missed.
Other top earners include Ryan Stokes of the Seven Group, who enjoyed a 45.7 per cent increase to $11.7m, driven by a doubling in cash-settled equity re-fair value to $5.88m in a year which saw it take full ownership of building materials group Boral.
Domino’s CEO Don Meij’s statutory remuneration lifted 85 per cent to $2m, of which 9.2 per cent was tied to performance. His pay in 2023 was $1.08m, pulled down by a loss of $966,112 in long-term options.
Nine Entertainment-controlled property group Domain awarded its boss, Jason Pellegrino, a 90 per cent statutory pay bump to $2.5m, much of it driven by a $506,331 short-term bonus amid a turnaround in performance.
ASX boss Helen Lofthouse had a 24.7 per cent bounce to $3.84m despite a fall in underlying profit, costly delays to its CHESS replacement system and landmark legal action from ASIC on the basis the market operator allegedly misled investors in early 2022.
Macquarie’s Shemara Wikramanayake was paid $29.4m on a statutory basis, which was about $1m less than the year before. However, on the company’s preferred metric, her pay fell 23.2 per cent to $25.2m as her share of retained profit share benefits fell to $16.62m.
Australian Shareholders Association chief executive Rachel Waterhouse said boards needed to ensure big bonuses were justified and met public expectations, and remuneration needed to be tied to performance, culture and customer perception.
“It may seem like a lot of money, but from a company’s perspective they want the best person who is going to stay and make a difference, and therefore the pay needs to be competitive and benchmarked for that type of organisation,” she said.
“We do think the threshold for bonuses can be too easy to achieve and more of a box-ticking exercise. Boards have to make sure they have the appropriate framework in place and not be captured by the CEO which can lead to a situation where they are setting their own pay.”
There were about 10 CEOs analysed by The Australian for whom remuneration fell in the past year.
Tony Lombardo was the biggest loser, with statutory pay falling 28.9 per cent to $2.68m after Lendlease received a first strike on executive pay over last year’s financial results. Treasury Wine Estates boss Tim Ford’s pay slid 15.4 per cent to $3.95, while Commonwealth Bank CEO Matt Comyn took home 2.3 per cent less at $7.17m.
Results this week will showcase how much Mike Henry was paid after his package totalled $US11.51m, while outgoing Woolworths boss Brad Banducci and Coles’ Leah Weckert will be judged against the backdrop of government inquiries and into pricing and anti competitive behaviour.
Underfire Nine Entertainment boss Mike Sneesby will be watched after the company sacked up to 200 employees and journalists at its publishing arm striked over pay during the Olympics before agreeing to a 4 per cent pay rise this coming fiscal year.
Qantas, which had a more than 80 per cent vote against its executive pay report following controversy surrounding former CEO Alan Joyce will report this Thursday, while Lovisa also reports after its boss Victor Herrero was the highest paid last year with a $29.09m pay day.
Ms Waterhouse said the decision by Qantas to cut Mr Joyce’s final pay by $9.3m following him overseeing the illegal sacking of 1700 baggage handlers and findings by the ACCC that the airline sold ghost flights of boards having the ability to claw back bonuses if a CEO was not displaying the right behaviour or hurts the company’s standings.
“You want them to have skin in the game to think like a retail shareholder, but it also helps them to fully understand the impact of the decisions when their income is riding on it.”
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