PM canes Australia Post chief’s $5.6m salary

Australia Post chairman John Stanhope says no efforts were made to hide the $5.6m pay packet of CEO Ahmed Fahour.

Malcolm Turnbull says the salary of Ahmed Fahour is exorbitant. Picture: Mike Keating

UPDATE: Australia Post chairman John Stanhope says no efforts were made to try and hide the $5.6 million pay packet of its chief executive, Ahmed Fahour, despite objecting to a Senate committee’s decision last night to publicly disseminate the information.

Australia Post is today scrambling to justify Mr Fahour’s remuneration and argues his salary is paid out of profits rather than at the taxpayer’s expense.

“We’ve reported it every year as required. It did change in 2015 when the requirement was to do it by individual. There’s no intention to try and hide anything,” Mr Stanhope said.

“It is a government business enterprise. That is true. But it isn’t actually taxpayer funded. It’s self funded, so it generates profits and generates its own cash.”

“Today, Australia Post, 73 per cent of its revenue comes from the parcels business and all its profit comes from the parcels business. So it’s a very competitive business.”

“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.”

James Paterson, Chair of the Standing Committee on Environment and Communications, says that government owned businesses should conform to the same transparency requirements as listed companies.

Senator Paterson, speaking on 3AW radio in Melbourne, said that Australia Post objected to the disclosure of the $5.6 million pay packet of its chief executive Ahmed Fahour.

He said they argued such an action “could damage the commercial prospects of Australia Post.”

“They used to publish this information in their annual report but stopped doing so. They said that it would potentially cause problems for the individuals involved and damage their privacy,” Senator Paterson said.

“(But) if it doesn’t affect the privacy of a CEO of a major company well I don’t see why Australia Post should be any different.”

Senator Paterson said that that a range of other senior executives -- up to half a dozen -- were on pay packets of between one and two million dollars.

PM goes postal: ‘He’s overpaid’

Malcolm Turnbull has taken aim at the $5.6 million pay packet of the head of Australia Post, Ahmed Fahour.

The Prime Minister today said that Mr Fahour was paid too much and that he had spoken to the chairman of Australia Post.

“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.

Mr Fahour’s salary of $4.4 million and a bonus of $1.2 million were disclosed by Victorian Liberal Senator James Paterson who released documents from Australia Post provided to in response to his questions at a Senate estimates hearing.

Mr Fahour’s $5.6 million pay packet means he takes home more than 10 times what Mr Turnbull earns as Prime Minister.

Senator Paterson, the chair of the Senate committee, said it was “absolutely appropriate” for taxpayers to be able to examine Mr Fahour’s salary.

One Nation leader Pauline Hanson also declared she was “absolutely disgusted” by the multi-million dollar pay packet.

“It’s disgusting. Last I heard he was on $4.8m. I will be actually following this up. I am going to find out who’s approved this, why it’s been approved, because no Australian would support this, no one,” Senator Hanson said.

“I want to know why the members of parliament here are not screaming about this. I’ve only been in this position since last August so the fact is now these are things that upsets the Australian people so much. It’s unrealistic.”