Government Business Enterprise hearings: $75k bonus for Hydro Tasmania CEO under scrutiny

Did you pay more for power this year? While Tasmanians forked out an extra $200 for electricity, it’s been revealed senior Hydro executives enjoyed fat bonuses adding up to hundreds of thousands. Find out how much they got.

Hydro Tasmania CEO Ian Brooksbank at Blundstone Arena. Picture: Chris Kidd

The bonuses paid to Hydro executives are rising as fast as Tasmanian power bills, a parliamentary committee has heard.

The senior managers of the state-owned power generator have appeared alongside Minister for Energy and Renewables Nick Duigan in front of the Government Business Enterprise scrutiny hearings in Hobart on Friday.

Hydro made a $168m profit and returned a $110m to the state government in 2022/23.

Tasmanian power bills went up 7.5 per cent in July – adding an extra $200 the average yearly energy bill

Households will get around $28 off their power bills as a renewable energy dividend.

Hydro executives are eligible for bonuses of up to 15 per cent of their base salaries based on their performance. Nine out of ten received 80 per cent or more of the maximum bonus.

“Remuneration levels for senior executives are intended to attract and retain top talent while also complying with applicable guidelines,” the Hydro annual report says.

Labor’s energy spokesman Dean Winter asked the minister what he thought of the bonuses.

“Hydro executives were paid $363,000 in performance bonuses last financial year, an average bonus of about eight per cent, which is almost the amount that Tasmania’s power bills went up this financial year,” he said.

Labor's Dean Winter on Parliament Lawns in Hobart on November 22, 2023.

“Minister, do you think that’s appropriate?

“The CEOs bonus alone was $75,000 — roughly the average wage for a Tasmanian worker.

“Do you think the Tasmanians will be pleased to know that their power bills are contributing to $75,000 bonuses for executives?”

Minister Nick Duigan did not express an opinion.

“Hydro acts absolutely within the bounds of the law and executive remuneration is an issue for the board,” he said.

Minister Nick Duigan. Final sitting week of parliament for 2023. Picture: Nikki Davis-Jones

Mr Winter also raised $113,000 termination payment in to resigning executive Caroline Wycamp, who then became Marinuslink CEO. It included an $83,000 amount in lieu of notice.

Mr Duigan said it was a matter for the board and accused Mr Winter of chasing headlines.

“In fairness, we’ve probably canvassed the questions you’ve asked,” he said.

The government has rejected Labor’s policy of a regulator price cap on power price rises as risky to the financial sustainability of the industry.

Both major parties have had the policy as part of their platforms at various times over the last decade.