Big bucks on the board

DIRECTORS of Australia’s biggest companies have given themselves larger pay rises than average wages growth despite failing to deliver good investment gains for millions of mum and dad shareholders.

Some directors’ payments have doubled in the past decade and most are being paid at least $200,000 for these parttime jobs.

A News Corp Australia analysis of 2017 and 2007 annual reports has found average director pay increases of 57 per cent among top 20 companies, but their combined sharemarket value is less than it was a decade ago.

Most chairmen earn $600,000 to $850,000 a year, including: AMP’s board being paid 59 per cent more — $3.45 million — while its financial advice busi- ness struggled, culminating in scandal and multiple director resignations last month. WOOLWORTHS chairman’s salary doubling to $704,000 despite the company losing billions of dollars in its failed Masters stores, with current chairman Gordon Cairns also chairman of Origin Energy ($689,400) and a director of Macquarie Group ($328,000). TOLL road company Transurban’s director fees jumping from $65,000 to $85,000 a decade ago to $214,000 to $265,000 last year, and: TRANSURBAN chairman Lindsay Maxsted’s $550,000 payment was in addition to his Westpac chairman payment of $829,734 and BHP director payment of $337,000.

The average Australian wage is $62,000, up 35 per cent in 10 years, according to Bureau of Statistics data.

Investment specialists say company directors today have a much larger workload and some fee rises are justified by company success.

“The public has a perception that directors are overpaid, but the consequence of getting a bad board, chairman or CEO are really significant and the business community understands that,” said financial services academic Andrew MacDonald said.

He said overall directors were paid well and “I don’t see any evidence suggesting that it is going to slow”.

Australian Shareholders Association CEO Judith Fox said the pool of each companies’ directors’ fees required shareholder approval every three to five years.

“We expect them to work for their money,” she said.

“The workload has increased without a doubt. Much more is expected of them.”