For the first time, Australia has a CEO in Australia making more than $40 million for a financial year.
Research released by the Australian Council of Superannuation Investors (ACSI) showed that CSL’s Paul Perrault is now the most well-paid person in Australia.
Qantas CEO Alan Joyce, who had previously topped the list two years ago and ranking fourth in 2019, fell out of the top 10 as the travel industry was battered by lockdowns.
The research has also, for the first time, calculated realised pay for 12 ASX 200 companies based outside Australia, showing the effect of living in different jurisdictions.
The US-based CEOs of ResMed and Avita Medical realised respective pay of $45.59 million and $37.57 million. By contrast, five New Zealand-based CEOs collectively realised just $9.28 million.
10 highest-paid ASX 200 CEOs on a realised-pay basis in FY20:
|
Rank |
CEO |
Company |
Realised Pay |
1 yr TSR |
5 yr TSR (P/A) |
|
1 |
Paul Perreault |
CSL |
$43,044,606 |
35.0% |
28.9% |
|
2 |
Bill Beament |
Northern Star |
$31,783,929 |
16.4% |
45.9% |
|
3 |
Greg Goodman |
Goodman Group |
$26,868,195 |
0.9% |
22.3% |
|
4 |
Shemara Wikramanayake |
Macquarie Group |
$16,394,225 |
-30.5% |
7.4% |
|
5 |
Jake Klein |
Evolution Mining |
$15,849,082 |
33.8% |
41.2% |
|
6 |
Brad Banducci |
Woolworths Group |
$12,675,608 |
15.4% |
10.5% |
|
7 |
JS Jacques |
Rio Tinto |
$11,878,372 |
20.7% |
28.1% |
|
8 |
Michael Clarke |
Treasury Wine Estates |
$11,307,382 |
-27.6% |
19.0% |
|
9 |
Kevin Gallagher |
Santos |
$11,041,969 |
-22.1% |
12.7% |
|
10 |
Sandeep Biswas |
Newcrest Mining |
$10,985,657 |
-0.3% |
20.3% |
Remunerations fall
A record share of Australian chief executives have missed out on bonuses last year, with investors pushing salaries to executives to decade lows, the reserach showed.
Research released by the Australian Council of Superannuation Investors (ACSI) showed a new trend against voting for CEO bonuses.
The research showed that almost one-third of ASX 100 CEOs received no bonus in the past financial year. This is in contrast to the period following the global financial crisis where all but 12 ASX 100 CEOs received a bonus in FY2009.
ACSI CEO Louise Davidson has welcomed the finding, saying the changing remunerations highlight the engagement of ACSI and its members over time.
“Newly appointed CEOs almost always now start on a salary base significantly lower than their predecessors, and bonuses are becoming not just harder to achieve, but more often paid in equity rather than cash,” Ms Davidson said.
Not all companies followed the downward market trends, with a number of outliers receiving high levels of realised pay.
“As the impact of the pandemic subsides, boards will need to keep assessing whether performance hurdles and the value of shares being awarded are appropriate to ensure any new incentives align with gains made by investors,” Ms Davidson concluded.
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