CEO’s make out like bandits while workers’ wages fall

By Leith van Onselen

Just as the average worker continues to get poorer, as illustrated by the Average Compensation Per Employee falling by 0.9% in real (inflation-adjusted) terms in the year to September, and by 3.3% since March 2012:

Australia’s top CEOs continue to make out like bandits, now earning an average of $4.75 million — or 78 times more than the average Australian worker. From Msn Money:

Australia’s top chief executives earn an average of $4.75 million — or 78 times more than the average Australian worker.

The stark finding comes from corporate adviser Conrad Liveris, who has examined the remuneration of executives at Australia’s 100 biggest public companies…

Over the past couple of years, CEO remuneration has climbed 46 per cent more, year on year, than average Australian incomes.

Mr Liveris believes corporations need to align increases in executive remuneration to Australia’s Wage Price Index, in an effort to win back trust in the country’s biggest businesses…

More grist for the mill for Labor’s inequality agenda.

[email protected] 

Comments

  1. Record profits here, but as they were helped by bullish markets the salary and bonus pool was cut.
    My boss had to beg for my salary increase, one of very few this year at my level.
    More than half my bonus is now in the form of long term handcuffs.
    As for my staff, only 1 from 3 received an increase.
    Great times ahead!

  2. many of the bosses held up as an example are staff of ASX listed companies
    the PE of almost all of those companies is at flood level and has lost touch with reality.
    A correction in the ASX will sort things out.
    trouble is the punters will take a hit too as their super will collapse.
    to any punters out there, get your money out of super and into a bank pronto.

  3. I’d say, as a whole, they’ve earnt it. Lobbying for a huge tax cut that will directly benefit your shareholders and not your parasitic staff is quite a win indeed. Staff are just a painfully necessary overheard until you can replace them via automation.

    But seriously, should their remuneration not be in equity not cash? Long withholding periods that do not cease when they resign to ensure they think long, and long and hard about their successors? In the corporate world you can have your cake and eat it too, as well as some of everyone else’s cake.

    If management isn’t in it with the shareholders then what will motivate them to act in the shareholders best interest. Certainly not fat pay packets, fatter bonuses and morbidly obese golden handshakes.

  4. Jumping jack flash

    Sounds like the system is working perfectly as designed.
    The ones who need it the least, get the most.

    And as for the rest of you:
    Keep paying your debts, slaves!
    Keep buying useless Chinese stuff, sheep!

    There’s a good little consumer-bot.

  5. The Horrible Scott Morrison MP

    This site is very ignorant about economism. CEOs take that money and buy Ferraris, which creates jobs and gives money to sales assistants and car washers, so that they can then go and buy Holdens. It’s known as trickle down golden shower economics.

    • Which is why I do not have a problem with rich immigrants coming here and buying mansions + Lamborghinis + Louis Vuitton goods. My problem is the tsunami of barely literate males coming over directly from 3rd world slums to work here for illegal wages. Thus paying no income tax at all but adding to the overcrowding in trains, schools, hospitals while denying me a job!

      • The Horrible Scott Morrison MP

        Barely literate males? That could be quite good. Do you think they’d like to sign some loan documents to invest in property?

      • You’re right! We don’t need no damned workers producing anything. We only need consumers for everything to be hunky-dory. That’s at the very core of modern economic theory. GDP! GDP! GDP!

Leave a reply

You must be logged in to post a comment. Log in now