A chief executive in Australia’s ASX100 list is more likely to lose their job than their annual bonus pay, new research shows.
The Australian Council of Superannuation Investors (ACSI) released the 23rd edition of its annual report looking into CEO pay levels in companies listed on the ASX200 list.
The latest report examines remuneration outcomes for last financial year (FY23) and includes the unique data lens of “realised pay”, meaning the actual compensation paid out to the CEO.
The highest paid Australian-based CEO on the ASX100 was Greg Goodman, who heads up Goodman Group. His total realised pay for FY23 was $27.34 million.
Shemara Wikramanayake, the CEO of Macquarie Group, was the second highest paid domestic CEO, with a total realised pay of $25.32 million. Wikramanayake was the only woman CEO to make the top ten highest paid CEOs in the ASX100.
The ACSI’s research found there was an overall drop in the median realised pay for CEOs on the ASX100, falling from $3.93 million in FY22 to $3.87 million in FY23. It is the lowest median pay of CEOs in the ten years since the ACSI began collecting data on realised pay. Researchers cite greater investor scrutiny and focus from boards of companies as a key reason for this drop.
But the ACSI found executive bonuses were normalised in FY23, with all but two CEOs from the ASX100 list taking home a bonus. The median bonus was 66.3 per cent of maximum potential.
Meanwhile, across the ASX200 list, there were 24 termination payments distributed, meaning a CEO has more chance of being fired than not receiving a bonus.
Ed John, the Executive Manager of Stewardship at the ACSI, said bonus payments should “not become a given” in Australian businesses.
“At a time when companies are focused on productivity and performance, it is critical that bonuses are only paid for exceptional outcomes,” John said.
“While overall pay levels have dropped, investors and boards must not become complacent. The numbers show that we could see a breakout in CEO pay levels in future. It will be critical that boards pay close attention and ensure performance hurdles are set at the right levels.”
Mick Farrell, CEO of ResMed, and Robert Thomson, CEO of News Corp, were first and second place respectively as the highest paid CEOs on the ASX list (based overseas). Farrell’s realised pay was $47.58 million, and Thomson’s was $41.53 million.