Bigwig bosses’ pays rocket

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 now being paid at least $200,000 for these part-time jobs, with many holding multiple board seats.

A News Corp 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-$850,000 a year, and examples of big fee moves include:

● AMP’s board being paid 59 per cent more – $3.45 million – while its financial advice business 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-$85,000 a decade ago to $214,000-$265,000 last year.

● Transurban chairman Lind- say 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 for all employees 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

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 ANDREW MACDONALD

some fee rises are justified by company success, but agree that most Australians are in the dark about how much directors are paid.

“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 Andrew MacDonald, director of the University of Adelaide’s International Centre for Financial Services. He said overall directors were paid well and “I don’t see any evidence suggesting that it is going to slow”.