While many Australians experience sluggish wage growth, executive pay packets are stronger than ever. 

The Reserve Bank of Australia (RBA) claims “stronger upward pressure” on wages growth has allowed it to raise interest rates, despite wage growth being at historic lows in recent months and years. 

Even so, a review of CEO bonuses commissioned by the Australian Council of Superannuation Investors (ACSI) show they rebounded from a record low of 31 per cent of base pay in 2020 to a record high of 76.7 per cent in 2021.

The two chief executives of buy now, pay later (BNPL) company Afterpay, Anthony Eisen and Nick Molnar, shared a record $264 million pay packet last year. This was largely due to a deal to sell the company to US fintech Square, run by Twitter co-founder Jack Dorsey.

Paul Perreault, the CEO of biotech company CSL, received $58.9 million – which would have been a record if not for Eisen and Molnar’s big trade. 

Greg Goodman from property company Goodman Group received the third largest pay packet $37.1 million, Shemara Wikramanayake of Macquarie Group brought home $14.7 million and Woolworths boss Brad Banducci was paid $11.8 million.

ACSI’s 21st annual survey of CEO pay found three CEOs received their maximum bonus over the past three years: Mark McInnes, chief of retail billionaire Solomon Lew’s Premier Investments, David Harrison from property group Charter Hall and Robert Kelly of insurance broker Steadfast.

ACSI is also monitoring exit payments as a potential avenue of poor spending.

In 2021, casino group Crown Resorts paid $4.85 million to departing boss Ken Barton, following an inquiry in New South Wales that found he had engaged in “improper” and “appalling” conduct.

“The issue of golden parachutes is always a concern for investors, and particularly where you see what is effectively pay for poor performance,” says Ed John, ACSI’s executive manager of stewardship. 

In regard to the wages of everyday people, the RBA has been criticised for relying on small sample sizes and private sector “liaisons” to conclude that there is strong upward pressure.