The Australian Council of Superannuation Investors (ACSI) revealed that ASX 100 CEOs received an average bonus of 66.3 per cent of their maximum potential in the 2022-23 financial year, with only two taking home no bonus.
However, this marked a decline from the previous fiscal year, where the average score was 71 percent of their maximum. Similarly, the average for ASX 101–200 companies fell from 68 per cent in FY21–22 to 60.7 per cent in FY22–23, while only six CEOs did not receive a bonus in the latest period.
On the other side of the coin, there were 24 termination payments across the entire ASX 200 sample, highlighting that a company leader is more likely to be terminated than to miss out on a bonus.
==
==
Commenting on the findings, ACSI's executive manager of governance, Ed John, said bonuses should not become "data" at Australia's biggest companies.
“At a time when companies are focused on performance and productivity, it is critical that bonuses are only paid for outstanding results,” John said.
What's more, realized pay – the value of cash and equity actually received – has declined among ASX 100 CEOs in FY22-23, with the average falling from $3.93 million to $3.87 million. According to ACSI, this is the lowest figure in its data set since a decade ago.
The ASX 101–200 median also fell from $2.10 million to $1.95 million.
The Goodman Group's Greg Goodman remains the nation's highest-paid executive with a realized salary of $27.34 million. Macquarie's Shemara Wikramanayake is in second place with $25.32 million.
For listed Australian companies based in the US, however, ResMed's Mick Farrell once again eclipsed local talent with $47.58 million, followed by News Corp's Robert Thomson with $41.53 million.
The highest termination payment in FY22-23 was $7.61 million for former CSL CEO Paul Perot.
"The fact that CEO pay has remained static suggests that greater investor scrutiny and focus from boards is having an impact," ACSI notes.
The research also highlighted some "clear warning signs" for Australian boards and investors in the coming years, according to the council.
Namely, reported pay levels for ASX 200 CEOs rose over the year – with average reported pay for ASX 100 leaders surpassing $5 million for the first time – which ACSI confirmed as a historic sign of much higher realized pay outcomes in future.
As such, John emphasized that investors and boards should not "get complacent."
“The figures show that we could see a break in CEO pay levels going forward. It will be critical that boards pay close attention and ensure that performance hurdles are set at the right levels,” he said.
