By I. Hansana, Jadetimes News
Australia’s top executives have seen significant pay increases in the past year, with the gap between CEO earnings and the average worker's salary widening even further. While many CEOs took pay cuts during the peak of the pandemic, their compensation has rebounded strongly in the years since, despite ongoing cost of living pressures affecting their employees.
In the 2023:24 fiscal year, CEO pay surged, with many executives receiving double digit increases in their remuneration. In contrast, average weekly earnings for workers rose by just 4.6% over the same period. Analysis by Guardian Australia, using published CEO remuneration data, highlights the stark disparity between executive and worker pay.
Shemara Wikramanayake, CEO of Macquarie Group, earned $29.4 million last financial year, a slight decrease from the previous year but still an extraordinary sum by any standard. Macquarie, a global investment bank, is known for its performance driven culture, rewarding executives who drive profits. Several of its executives earned more than $10 million last year, according to statutory remuneration data in the company’s annual report.
The ASX 200 had a strong year, rising nearly 8% in 2023:24, with technology and financial sectors leading the charge. This growth inflated the value of incentives and bonuses for many executives. For instance, Nick Hawkins, CEO of IAG, Australia’s largest general insurer, saw his pay jump 78% to $5.23 million, driven by rising premiums.
Similarly, Frank Calabria, CEO of Origin Energy, earned $6.7 million, up 13.5% from the previous year, as electricity prices surged for consumers. Leah Weckert, CEO of Coles, received $4.7 million in 2023-24, her first full year leading the supermarket giant. Although this was an increase from the $3.3 million she earned the previous year, it was still below the $10 million plus pay packets of her predecessor, Steven Cain.
According to the Australian Council of Superannuation Investors (ACSI), CEOs of Australia’s largest companies now earn, on average, 50 times the pay of a typical worker. In the early 1990s, this ratio was about 17 times. Ed John, executive manager of stewardship at ACSI, expressed concerns that short term bonuses are too easily achieved and stressed the need for boards to ensure that incentives align with strong long term performance.
John emphasized the importance of not becoming too focused on cyclical bonuses tied to market movements and urged boards to evaluate whether companies are meeting their strategic targets effectively.
In just the time it takes to read a typical article, Australia’s highest paid CEOs earn hundreds of dollars, while the average worker would make around one dollar. Yet, even among the highest earners, there is always someone earning more.
