$ 7.4m for electricity executives
THE 20 top executives at government- owned electricity corporations Ergon Energy and Energex were paid more than $ 7.4 million in 2015- 16, records have shown.
As consumers face rising power prices, the Bulletin has found that during 2015- 16, the 21 directors of both Ergon Energy and Energex were paid $ 821,000, with some directors collecting additional fees for acting as directors on Ergon subsidiaries Ergon Energy Queensland Pty Ltd and SPARQ Solutions Pty Ltd.
The highest- paid executive in 2015- 16 was Energex CEO Terence Effeney, who was paid a total of $ 895,000 including a $ 96,000 performance payment.
Ergon Energy CEO Ian McLeod collected $ 844,000, including a $ 62,000 performance payment and $ 190,000 in termination benefits.
Other highly paid executives included executive general manager asset management Peter Price, who received a total 2015- 16 package of $ 500,000, and executive general manager retail Roslyn Baker, who also served as acting chief executive, who received $ 599,000.
According to the financial statement of parent company Energy Queensland, executive employment contracts make provision for fixed remuneration and an “at risk” performance incentive. Any “at risk” payment is contingent on the boards’ assessment of the company’s overall performance and shareholder expectations.
Performance payments may not exceed a maximum of 15 per cent of the individual’s total fixed remuneration.
The State Government announced a merger of Ergon and Energex for the 2015 election with new entity Energy Queensland formed on June 30, 2016. The Government promised a target of net estimated savings of $ 560 million over five years.