CEO wages are falling and golden parachutes have collapsed

The Age

18-06-2025

Australia's top chief executives have watched their collective pay packets shrink in real terms over the past decade, and termination payouts are down nearly 90 per cent since a crackdown on egregious 'golden parachute' exits during the global financial crisis.
Research from governance advisory group the Australian Council of Superannuation Investors (ACSI) shows investors have successfully reined in the pay of ASX-listed CEOs with the help of changes to the Corporations Law after the financial crisis and backlash over egregious pay practices. But it flagged more work is needed on overly generous bonuses for company bosses.
ACSI head Louise Davidson pointed to the big fall in termination payments as a significant achievement over the past decade.
In 2008, such payments totalled $83 million, compared with $8.4 million last year.
'These payments were a major issue in the Australian market,' she said.
'In 2008 and 2009 alone, termination payments to executives of major public companies cost shareholders over $117 million.'
ACSI's research showed the fixed pay component for ASX100 CEOs has stayed largely flat over the past decade, with the median salary of $1.76 million last year slightly below where it was in 2014 – which means it has actually shrunk significantly after accounting for inflation.
Factors for the collective pay cut include top-earning CEOs at high-profile companies such as Commonwealth Bank, Qantas and Telstra being replaced by executives on contracts with lower fixed pay and stronger incentives to align their performance with investors' interests.
ASCI's research says realised CEO pay – which reflects what these bosses actually earn when bonuses and share options are properly accounted for – has also shrunk in real terms. The median realised pay for ASX100 executives hit $4.15 million last financial year, compared with $3.96 million in 2014.