It really does pay to be a central banker


by Chris Becker

In case you missed this – on the back of my suggestion that perhaps the RBNZ and RBA should merge given the former’s credibility comparative advantage over the latter, at least currency wise – The Australian reported Captain Glenn’s pay-package yesterday:

The Remuneration Tribunal, that decides his salary, determined an increase of 2.4 per cent for the position of governor, effective from July 2013.

Consequently, his total remuneration was $1,010,456 in 2013-14 compared with $986,773 in 2012-13.

This includes a salary of $862,256, up from $842,285 in the previous year.

Not bad going but how does it compare internationally? Here’s a great table from the chaps at ForexLive (I’ve added the AUD equivalents)

  • BOE Governor Mark Carney at £874,000 a year (AUD 1.6million)
  • RBNZ Gov Wheeler at NZ$600,000 (AUD 538K)
  • Poloz between C$431,800 and $507,900 (AUD 458K)
  • Draghi at €374,000 (AUD 538K)
  • Kuroda at approx $221,000 (AUD 251K)
  • Yellen at $199,700 (AUD 226K)

Not a bad gig – 2nd highest in the world behind the Poms.

Must be to compensate for the Sydney real estate market.

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    • Yeah pretty much speechless on this one.

      It’s a close call as to whether his IP portfolio has out-earned him this year.

  1. Underpaid! Compared to teh morons Gail Kelly et al! Why should Glen’s pay be 10% of Kelly’s?????

      • @ Chris – yep I’m sure that he is. However technically he is now self employed and he has little income history as a S/E person. He can’t provide tax returns to prove his income, probably hasn’t had his “business” registered for very long, so a low doc is out of the question and the rates are too high.

        If he’s looking to refi he must be looking for a better rate – this is something that he should have sorted out before he resigned.

        Funnily enough this happens a fair bit. People who can easily arrange finance while they are fully employed resign and then look for finance for that little business they have been thinking about – they do it back to front.

      • migtronixMEMBER

        You’re calling BS on the idea that the “man who saved the world from depression” and greatest banker on Earth can’t get a loan?

        Why I never!

  2. johnathonbbbrown

    Slimy Fish Stevens is an incompetent fat cat gouging whatever he can out of the system while he completely fucks it up.

    • Well the Swans have a cost of living allowance, why not our CB’s…. Must be a tough slog, bless them…

  3. $1m to make a binary decision once a month while watching bubbles inflate and the economy erode – what a joke!

  4. Well I hope Yellen got her money elsewhere. $266k is barely enough to get a 70s shitbox in big towns. That’s quite profound how low it is really given the US are the a grade ponzi merchants.

    • from the article I linked Bluey;

      Don’t worry too much about Yellen, she estimated her wealth between $5.1-$14.1 million in regulatory filings and she’s never worked outside of the public/education sector.

      • migtronixMEMBER

        Ms. Yellen earns a salary of $179,900 as a Fed governor. She does not earn anything extra for her position as vice chairwoman. On top of that, the couple reported income from investments of between $102,820 and $323,200. The disclosure forms do not include the salary earned by Mr. Akerlof as a senior resident scholar at the International Monetary Fund.

        (The leading candidate to succeed Mr. Bernanke, Lawrence H. Summers, the Harvard economist and former Treasury secretary, reported wealth between $7 million and $31 million in 2009, when he last entered public service. He has probably raised that number considerably since leaving the Obama administration in 2010.)

        The format of the disclosures make it impossible to rank the Fed’s governors by wealth, but Mr. Bernanke’s reported holdings of $1.1 million to $2.3 million had the lowest minimum and the lowest maximum values of any governor.

        Bernanke should angle for a job at Goldman, what’s he waiting for a Nobel prize?

      • Oh that’s good she’s got a lot of free boomer money.

        Mig in GTA 5 they call Goldman Sachs “Schlongberg Sachs”.

        GTA 5 is probably the most educational video game going!

        The latest from one of the 70 year old boomers I know of is they just got a 2.5L Mazda 3, 138kw. Madness.

        I look forward to paying that off for her. 😀

    • $266k is barely enough to get a 70s shitbox in big towns

      You would be very surprised. Outside of NY, LA and SF, that is pretty good money…

      • Yeah but when you’re the elite’s number 1 puppet you’re not going to want to slum it in Austin.

      • We are stupid here! Look at what the cost of dogbox buys you even in LA or New york…you won’t be slumming it almost anywhere but in Oz.

      • I can’t see that much of a difference FlyingFox. LA, NY, SF, London, unless you’re rich you’re fucked.

      • Most rich Wall Streeters dont live in NYC, they live in CT/NJ/NY state. In those places, 1-2M will buy you a 4000 sq ft place in a nice area of a nice town, even places like Greenwich CT (Hedge Fund central).

        Of course a REALLY nice place would be $3M plus, but that should be doable on that salary plus a bit of capital.

        (obviously I dont think she needs to worry anyway).

    • It is indeed bizarrely low. I feel sure GoldmanSachs will help her out if she ever finds herself in financial strife, though.

      • bizarrely low

        Very similar to Warren Buffett’s salary. Maybe it is intended to be a kind of honorarium, rather than competitive remuneration.

      • It is indeed bizarrely low.

        Similar to most public jobs in the US. Maybe thats why the lobby groups etc are so big and string there. Make money after “public service”.

      • Correct StatSailor – you are expected to have already made your loot before taking on a high public office role.

        Its meant to act as a salve to your conscious to make up for your private sector sins.

  5. Punt Glenn “I haven’t tried anything and I’m all out of ideas” Stevens.
    Offer Wheeler $700k and the gig at 65 Martin Place.
    Massive productivity gain.

  6. I could do Glenn’s job for a tenth of the salary. “No, No, No, No, No, No, No, No, No, No, No, No, No, Woops!”

  7. “….perhaps the RBNZ and RBA should merge…..”

    That would be terrible for NZ…….