Southern Cross boss’s bonus criticised

Southern Cross Health Society chief executive Nick Astwick has been paid a $160,000 bonus, causing grumbling inside and outside the not-forprofit health insurer.

It also prompted an email from Astwick to staff not to talk to the media after Stuff contacted the society to ask about the bonus, which was paid on top of Astwick’s $739,749 base salary for the year to the end of June. The bonus is controversial because many staff have accepted a pay-freeze for the current financial year to the end of June next year, and policyholders continue to be hit with large premium rises caused by a mix of inflation in the cost of private healthcare, as well as more people making claims on their health insurance.

‘‘It is incredibly disappointing that one individual has elected to raise these concerns with a member of the media, rather than with your leadership,’’ Astwick said in the email sent on Thursday. ‘‘You have hopefully seen in recent weeks that we strive for transparency and openness in this organisation.

‘‘Had we been asked directly we would have responded. We don’t always get it right but, please; if you are unhappy about any part of your work with us, speak to your leader, to their leader or to our people and culture team; not to the media.’’

Astwick quashed a rumour that the members of the society’s leadership team all received a pay rise of $20,000 despite the pay-freeze. ‘‘That is not true,’’ his email said. ‘‘The decision to hold salaries at current levels was not one we took lightly.

‘‘We value equality and the pay freeze was applied, from the board down without exception. Every employee in Southern Cross including the chief executive and executive team took a pay freeze this year.’’

The email came after Stuff asked about the bonus following an anonymous email claiming to be from a Southern Cross staff member.

‘‘When all the employees were let know that there would be no salary increase this year, we did agree with the board and management as we wanted to be frugal to keep us all employed and in [the] black,’’ they said. ‘‘How [would] employees like me who are in the $60,000 range feel when the chief executive takes a bonus pay when he gets more than 10 times our pay?’’

Southern Cross chairman Greg Gent defended the bonus payment, praised Astwick’s leadership, and said the chief executive’s salary had been frozen for the current financial year as had the salaries of all other employees. ‘‘Southern Cross Health Society Group [on Wednesday] announced a surplus of $32.4 million for the year ended 30 June 2020,’’ Gent said. ‘‘This result is testament to the successful navigation of a highly unusual set of circumstances as a result of the Covid-19 pandemic.

‘‘Amid a climate of great uncertainty, the society also returned $50m to ... members by way of premium credits, and introduced significant hardship options.’’

The society decided to make premium rebates to help health insurance policyholders afford their policies before AA Insurance and Tower made similarmoves.

Gent said every employee contractually entitled to a bonus was paid it.

The society paid 632 of its 700 staff less than $100,000 in the year to June 30.

‘‘The decision to hold salaries at current levels was not one we took lightly.’’

Nick Astwick

Southern Cross chief executive