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JobKeeper sees CEO bonuses rise

  • September 01 2020
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Invest

JobKeeper sees CEO bonuses rise

By Cameron Micallef
September 01 2020

The Morrison government’s JobKeeper scheme has been used for corporate welfare and to line the back pockets of CEOs, an opposition minister has shown.

JobKeeper sees CEO bonuses rise

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  • September 01 2020
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The Morrison government’s JobKeeper scheme has been used for corporate welfare and to line the back pockets of CEOs, an opposition minister has shown.

During a speech made to the House of Representatives, deputy chair of the standing committee on economics Dr Andrew Leigh questioned how ASX-listed companies were using the government’s stimulus money. 

Instead of supporting the business through hardship, many CEOs claimed a bonus, Dr Leigh said. 

“Accent Group received $13 million in JobKeeper and gave CEO Daniel Agostinelli a $1.2 million bonus.

“IDP Education received $4 million in JobKeeper and gave CEO Andrew Barkla a $600,000 bonus. Last year, he was Australia’s highest-paid CEO, taking home $37 million.

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“Star Casino received $64 million in JobKeeper and gave CEO Matt Bekier an equity bonus worth $800,000.

“SeaLink received $8 million in JobKeeper and gave CEO Clinton Feuerherdt a $500,000 bonus,” the elected official explained.

‘Dividend Keeper’

Dr Leigh also pointed out how much of the government’s money was simply being handed out to shareholders in the form of dividends.

“Furniture firm Nick Scali received $4 million from Australian and New Zealand taxpayers. Its increased dividend will deliver $2 million to the Scali family.”

“1300SMILES got $2 million in JobKeeper and paid out $3 million to shareholders. Managing director Daryl Holmes owns two-thirds of the company and so will get about $2 million, roughly what his company received in JobKeeper support,” Dr Leigh said.

While the opposition minister highlighted that it was never the government’s intention to subside executive salaries, he showed how it was used.

“If you’re getting taxpayer subsidies, the CEO should not be getting a bonus,” Dr Leigh concluded.

JobKeeper sees CEO bonuses rise
JobKeeper sees CEO bonuses rise
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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