[Australia] Double-digit pay rise for top business execs

In Australia, top business executives have gained an average 15 per cent base pay rise, according to new research, 9News reports.

The research, released on June 14, came from a study that examined data from 1,167 boards across the private, public and not-for-profit sectors. It is released as the debate about whether a 5.75 per cent pay rise for workers on award wages will stimulate inflation continues.

According to the report released by the Governance Institute of Australia, bosses at a number of the largest listed companies recorded average pay rises of more than double the rate of inflation over the past year.

Chief executives of companies listed on the Australian Securities Exchange (ASX)  reportedly received an average 15 per cent base pay hike. While business leaders holding the title of managing director received a 14 per cent rise.

Of those surveyed, bosses helming Australia's top 200 companies fared even better. Their fixed average pay increase was 19 per cent, resulting in a median base pay figure of $1.1 million for a CEO with an ASX 200 company.

The average rate of pay for those with a managing director title was $1.6 million.

However, 52 per cent of listed-company managing directors and 51 per cent of CEOs were reportedly eligible for performance bonuses, with an average 89 per cent maximum for managing directors and 72 per cent for CEOs.

For execs heading not-for-profit organisations and non-listed firms, the average pay increase was around 9 per cent.

The Governance Institute's chief executive Megan Motto said that the 2023 figures revealed a big hike, following years of moderate pay rises.

"These are significant increases off the back of several years of relatively small rises in fixed pay for executives," she said.

It was announced earlier this month that Australia's lowest-paid workers will receive a 5.75 per cent pay rise after the Fair Work Commission's annual minimum wage review.

The current minimum wage is $21.38 per hour or $812.60 per 38-hour week (before tax).

Business leaders reportedly warned that the increase would add to company costs and could potentially contribute to inflationary pressures.

The new rates come into effect on July 1.

Source: 9News

(Link and quotes via original reporting)

In Australia, top business executives have gained an average 15 per cent base pay rise, according to new research, 9News reports.

The research, released on June 14, came from a study that examined data from 1,167 boards across the private, public and not-for-profit sectors. It is released as the debate about whether a 5.75 per cent pay rise for workers on award wages will stimulate inflation continues.

According to the report released by the Governance Institute of Australia, bosses at a number of the largest listed companies recorded average pay rises of more than double the rate of inflation over the past year.

Chief executives of companies listed on the Australian Securities Exchange (ASX)  reportedly received an average 15 per cent base pay hike. While business leaders holding the title of managing director received a 14 per cent rise.

Of those surveyed, bosses helming Australia's top 200 companies fared even better. Their fixed average pay increase was 19 per cent, resulting in a median base pay figure of $1.1 million for a CEO with an ASX 200 company.

The average rate of pay for those with a managing director title was $1.6 million.

However, 52 per cent of listed-company managing directors and 51 per cent of CEOs were reportedly eligible for performance bonuses, with an average 89 per cent maximum for managing directors and 72 per cent for CEOs.

For execs heading not-for-profit organisations and non-listed firms, the average pay increase was around 9 per cent.

The Governance Institute's chief executive Megan Motto said that the 2023 figures revealed a big hike, following years of moderate pay rises.

"These are significant increases off the back of several years of relatively small rises in fixed pay for executives," she said.

It was announced earlier this month that Australia's lowest-paid workers will receive a 5.75 per cent pay rise after the Fair Work Commission's annual minimum wage review.

The current minimum wage is $21.38 per hour or $812.60 per 38-hour week (before tax).

Business leaders reportedly warned that the increase would add to company costs and could potentially contribute to inflationary pressures.

The new rates come into effect on July 1.

Source: 9News

(Link and quotes via original reporting)