November 20th, 2009
Remuneration consultant Strategic Pay doesn’t think NZ CEOs are being paid above the odds. It says most pay excesses are in the private sector. Its latest CEO and Top Executive remuneration survey dispels some myths about the public sector. It says in the largest organisations, those in the private sector could expect an average package of $1m plus. However, CEOs in the largest public sector organisations get an average of $404,000.
Strategic Pay says a standout in the survey is the low level of bonuses. Across the 217 private _sector CEOs surveyed, only 53% received any bonus or incentive, with a median payment equal to 23% of base salary. The survey follows publicity about Telecom CEO Paul Reynolds’ $5m-plus and Air NZ’s Rob Fyfe’s $2.4m pay packets, despite the companies’ falling profits.
Meanwhile anger has been directed at NIWA CEO John Morgan who has pocketed a $130,000 pay rise this year as state sector workers endure a pay freeze. Morgan’s salary has risen to more than $550,000, making him one of the highest paid public servants on record. NIWA’s net profit dropped to $6m in the June financial year from $10m the previous year. Its return on equity fell from 17.9% to 9.8%. The heads of Treasury, Health, and Social Development, all earn the same as Morgan – between $550,000 and 559,999. TVNZ pays 168 staff more than $100,000.
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