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The Australian
07-07-2025
- Business
- The Australian
Why the CFO to CEO journey starts from within
The path from chief financial officer to chief executive is increasingly well trodden. In 2024, Spencer Stuart research found almost one in five ASX 100 CEOs transitioned directly from a CFO role, with an even larger share holding a meaningful finance role at some point in their careers. The evolving role of the CFO has no doubt smoothed the pathway: many have transformed from financial gatekeepers to strategic partners and transformation leads. As for the disparity between direct and indirect transitions, it can likely be attributed to what's told to many CFOs aspiring to become a CEO: get operational experience, take on some stretch goals, round yourself out. This advice can be valuable, or even necessary, but it's partly borne out of entrenched perceptions of CFOs that persist regardless of whether they are true of the individual. For example, a company's board may be predisposed to think of CFOs for their financial acumen, decisiveness and exposure to the board, while also believing they are risk averse, uncomfortable with abstraction and less capable of articulating a vision. Justly or not, CFOs must assume they face these perceptions in order to successfully transition to CEO. It's not just about being ready for the role, but being perceived as ready. Such a journey can't just be framed as a matter of accumulating new skills and experience without understanding and expanding one's mindset. The journey should be much more personal than formulaic. Just as the role of CFO has evolved over time, so too has the role of the CEO. The world is increasingly volatile, and boards rely on the CEO to respond quickly and intuitively to challenges as they arise, from complex acquisitions to PR crises. Tharani Jegatheeswaran is Client Relationships and CEO Program Leader at Deloitte Australia Stephen Tarling is CFO Program Co-Leader at Deloitte Australia They aren't expected to have all the answers, and in fact, trying to do so can become a liability. It's a common pitfall for those who feel most comfortable using data to explain what's already happened, not trusting their gut to navigate an uncertain future. A quote often attributed to McGill University professor Henry Mintzberg sums it up well: 'When the world is predictable, you need smart people. When the world is unpredictable, you need adaptable people.' It's for this reason that CFOs can't expect to thrive as CEO without examining – and if necessary, being willing to let go of – the mental tools that have served them well so far in their career. To achieve this, aspiring CEOs must peel back the layers of technical expertise to examine the person underneath. What mindset may limit you when facing an unfamiliar challenge? What may you be holding on to too tightly? This process of self-reflection can be unsettling, and it takes significant motivation. But for many Australian CFOs, it's key to taking the leap and landing on two feet. For example, a CFO may take on a technology-driven transformation to earn their stripes beyond finance and prove they have the know-how to handle a variety of organisational challenges. But unless they are willing to truly confront their default mindset – and the needs, fears, assumptions and beliefs that underpin it – the experience is unlikely to nurture true growth. The challenge for CFOs in this position is not just to learn how to detach from this internal bias, and choose a different path when necessary, but also to make this process second nature. An effective CEO is aware of their automatic response to an unexpected situation, and can quickly and intuitively assess whether it's the right approach. To put it another way, it's not enough to spend time outside your comfort zone. You must expand it – along with your emotional range and self-awareness. Looking inward isn't about looking for flaws, striving for perfection or reinforcing a sense of impostor syndrome. It's an exercise in building awareness of what makes you the leader you are today and the leader you want to become. This level of deep introspection can be humbling and uncomfortable. But learning to sit with it – and, crucially, learn from and act on it – is an invaluable opportunity for growth. To create time and space for this process, some CFOs focus on building a finance function they can trust to manage the finer details while they step into more strategic development and decision-making. Some even appoint a deputy CFO, which doubles as a development pathway for promising talent. Detail, accuracy and delivery are important factors of leadership. But being in the top job can be ambiguous, relational and political. Treating it as a next step, or another promotion in the climb, threatens to oversimplify the internal transformation that's often the key to becoming and thriving as a CEO. Tharani Jegatheeswaran is Client Relationships and CEO Program Leader at Deloitte Australia and Stephen Tarling is CFO Program Co-Leader at Deloitte Australia. - Disclaimer This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. Please see to learn more. Copyright © 2025 Deloitte Development LLC. All rights reserved. -
The Guardian
18-06-2025
- Business
- The Guardian
News Corp boss earns $42m as highest-paid CEO of Australian-listed company
News Corp's chief executive has become the highest-paid CEO of an Australian-listed company, a new analysis of CEO pay has found. Chief executives of ASX-listed companies are still being paid 55 times more than average workers in Australia but the gap is yet to widen to extremes seen overseas, according to the annual analysis from the Australian Council of Superannuation Investors (ACSI). Robert Thomson, who heads up the American media company News Corp, was paid nearly $42m in 2024, a $300,000 pay rise compared with the previous year, when he was the second-highest-paid Australian chief. Jewellery retailer Lovisa soared to second for CEO pay after handing $39.5m to its recently departed chief, Victor Herrero, in 2024, despite being smaller than more than 140 other ASX-listed companies. Macquarie Group's Shemara Wikramanayake took $29.8m in 2024, swapping places with commercial real estate giant co-founder Greg Goodman to become the third-best-paid Australian chief. If only ASX 100 companies are analysed, Wikramanayake is the highest paid CEO. The disparity between what CEOs and average workers earned grew in 2024 compared with the year before, after ASX's top 100 companies gave their chief executives a near 14% pay rise on average in the 2023-24 financial year. The average worker's earnings rose 4.6% in the same period, according to the Australian Bureau of Statistics. The gap has fallen since 2014, when chief executives were paid 70 times more than typical workers, the report found. Average CEO pay in 2024 was only slightly higher than it was in 2014, at $5.7m, whereas ordinary wages rose by nearly a third over the past decade. Sign up for Guardian Australia's breaking news email Local chiefs were paid 55 times more than average workers but Australia compared favourably to overseas, where CEO pay packets have soared, according to ACSI's executive manager of stewardship, Ed Johns. 'We're probably doing something right in Australia, where we've seen a real breakout in CEO pay in other countries,' he said. Chief executives at the top 100 US companies were paid 348 times the median American employee in 2024, or more than US$33m (A$51m) on average, according to research from analytics firm Equilar using a different methodology. The 100 biggest British companies paid their CEOs 78 times more than their median employees, the UK's High Pay Centre campaign group revealed on Monday. Australian investors and company boards have protested against big bonuses put forward by numerous companies in recent years, including Qantas, Woolworths and AMP. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion But American enthusiasm for big pay packets was already lifting Australia's CEO pay levels and Australia's disparity could rise if investors stopped keeping watch for 'egregious' bonuses, Johns warned. 'We could see a breakout if that focus is lost, so in the upcoming reporting season we'll be watching really closely … to make sure that the pay is actually in line with investor expectations,' he said. The analysis found the average CEO for a foreign-based, ASX 200 listed company was paid $600,000 more than CEOs of domestic ASX 200 companies, which ACSI attributed to 'North American pay practices'. Two US companies made the top five: News Corp and American-headquartered health company ResMed, which paid its Australian head, Mick Farrell, $20m in 2024. Another three US-based businesses cracked the top 20. 'We wouldn't be surprised to see a number of those names continue to be represented in that list,' Johns said. '[But] we don't want to see Australian companies follow that same path, particularly where these large bonuses don't actually match company performance.' ResMed's Farrell had held the top-paid position the previous year, with $47m pay, but took a cut to $20m after shares in the company tumbled in value over the prospect weight loss drugs would eradicate the need for Resmed's sleep apnoea devices.
AU Financial Review
18-06-2025
- Business
- AU Financial Review
Top executives see take-home pay stagnate amid golden parachute slump
The take-home pay of the country's top 100 chief executives has largely flatlined over the past decade, pushed lower by a slump in multimillion-dollar golden parachutes, research commissioned by super funds shows. The highest-paid chief executive in Australia was outside the ASX 100 – Victor Herrero, recently departed from Lovisa, the fast-fashion jewellery chain backed by billionaire Brett Blundy. The study also included those based in the United States, with News Corporation's Australian chief executive Robert Thomson topping the list with $41.9 million.
The Age
18-06-2025
- Business
- The Age
CEO wages are falling and golden parachutes have collapsed
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.
Sydney Morning Herald
18-06-2025
- Business
- Sydney Morning Herald
CEO wages are falling and golden parachutes have collapsed
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.
