Top bosses receive double-digit pay rises despite cost of living crisis
Executives at some of Australia’s largest companies have received double-digit pay rises as workers face rising cost-of-living pressures, Australian Associated Press reports.
A report on board and executive pay among ASX-listed companies, released on Tuesday by the Governance Institute of Australia, found the salaries of chief executives rose by 14% in the past financial year while managing directors received an 11% pay rise.
The survey of 1089 companies had shown the average pay of a chief executive of an ASX 200 listed company was $1.37m in 2023/24, up from $1.14m in 2022/23.
The average salary of the chairs of prominent companies also increased from $1.58m to $1.88m during the same period, while the salaries of general staff at the same companies rose by about 5%.
The Governance Institute chief executive, Megan Motto, said the report showed a widening disparity between executives and other staff.
“Against the backdrop of the cost-of-living crisis, and with so many doing it tough, it might be hard for many to stomach these figures on an individual basis,” she said.
“It will be up to those investors and shareholders to make their voices heard if they feel there are reputational risks in not meeting community expectations.”
The report found about half of the managing directors and chief executives were eligible for performance bonuses.
Key events
Think tank pushes for $10-a-day childcare
Amy Remeikis
Parents could save hundreds of dollars a week if the government overhauled its early childhood education scheme by paying providers directly and capping out of pocket costs to $10 a day for half the week, a new report says.
The Centre for Policy Development (CPD), a progressive think tank, posits the government could not only make early childhood education more attainable, it could also alleviate one of the biggest cost of living pressures if it took back control over childcare.
Key to that would be out-of-pocket costs capped at $10 a day for at least three days (free for low income parents) and a system where the government paid providers directly, rather than the current system, where parents have to estimate their activity (work) and incomes to receive the subsidy.
The CPD’s report ‘Growing Together’ sets out changes over a decade, transitioning from the current, subsidy driven system, to one where early childhood education is considered universal, one of the Albanese government aims. Across those 10 years, the CDP believes workforce challenges could be overcome, while also ensuring value for money within the system itself, and tailoring supports to every child.
CPD program director Katherine Oborne said adopting the report’s reforms would improve educational outcomes as a whole:
Research indicates that 22% of Australian children start school developmentally vulnerable. Without significant reform, children will continue to miss out on early learning opportunities, impacting their long-term development.
A new child-centred funding model—one that acknowledges families’ need for affordable care, addresses the diversity of children’s needs, and supports the workforce providing the care—will ensure all children can engage in early learning, making the system more accessible and affordable for families.
Good morning
Emily Wind
And happy Wednesday – thanks to Martin for kicking things off for us. I’m Emily Wind, and I’ll take you through our rolling coverage today.
As always, you can get in touch with any thoughts, tips and questions via X, @emilywindwrites, or you can send me an email: emily.wind@theguardian.com.
Let’s get started.
Australia will provide an extra $10m in humanitarian assistance for the people of Gaza, taking the total to more than $72m, Australian Associated Press reports.
The new funds will be directed to the World Food Program to pay for food assistance for civilians facing the risk of famine.
Since 7 October, Australia has committed $72.5m in humanitarian assistance for Gaza and the refugee crisis in the region.
“Australia continues to press for a ceasefire, for humanitarian aid to reach Gazans in desperate need, and for hostages to be released,” the foreign affairs minister Penny Wong said in a statement on Wednesday.
“We support the ceasefire endorsed by the UN Security Council and want to see it fully implemented by both parties.
“Any delay will only see more lives lost.”
Federal report into consultancy forms released today
A federal inquiry is due to release its final report into consulting services today in long-awaited findings that could redefine how the sector operates in Australia after the PwC tax leaks scandal.
The parliamentary committee is set to address issues of accountability and regulation in its recommendations, as it grapples with the risks posed to the public sector by the growing reliance on a small number of consultants.
Our business reporter Jonathan Barrett looks at why the inquiry was called, what the most important issues are, and what the inquiry has found so far:
Top bosses receive double-digit pay rises despite cost of living crisis
Executives at some of Australia’s largest companies have received double-digit pay rises as workers face rising cost-of-living pressures, Australian Associated Press reports.
A report on board and executive pay among ASX-listed companies, released on Tuesday by the Governance Institute of Australia, found the salaries of chief executives rose by 14% in the past financial year while managing directors received an 11% pay rise.
The survey of 1089 companies had shown the average pay of a chief executive of an ASX 200 listed company was $1.37m in 2023/24, up from $1.14m in 2022/23.
The average salary of the chairs of prominent companies also increased from $1.58m to $1.88m during the same period, while the salaries of general staff at the same companies rose by about 5%.
The Governance Institute chief executive, Megan Motto, said the report showed a widening disparity between executives and other staff.
“Against the backdrop of the cost-of-living crisis, and with so many doing it tough, it might be hard for many to stomach these figures on an individual basis,” she said.
“It will be up to those investors and shareholders to make their voices heard if they feel there are reputational risks in not meeting community expectations.”
The report found about half of the managing directors and chief executives were eligible for performance bonuses.
Josh Butler
Australia could stop opening new gas projects and still have enough supply to meet domestic needs for 60 years, claims the Climate Council in a new report calling for a quicker phase-out of the fossil fuel.
Powering Past Gas, released today, says Australia does not need to open any new gas projects and instead calls for more rapid changes to the nation’s energy market to reduce the need for gas – such as faster electrification transitions, cutting household and industrial use of gas, and slashing leaks of methane from extraction projects.
The report notes that new gas projects in Qatar and the United States may make Australian gas less competitive on global markets, and warns that major export destinations for Australian gas such as South Korea, Japan and China are increasing their renewables share and cutting their gas usage into the future.
The Climate Council says gas is not needed as a “transition” fuel, as the Australian government’s energy strategy outlines.
“Switching from coal to gas would be like moving from tapes to CDs when Spotify has already been invented,” the report says.
“Gas used to be considered a better energy option, but now we can leapfrog it by moving from coal directly to cheap and reliable clean energy.”
Welcome
Good morning and welcome to our live news blog. I’m Martin Farrer, bringing you the best overnight stories but then it will be my colleague Emily Wind to be your guide for the rest of the day.
Some of Australia’s most powerful business lobbying forces have called for the Coalition to agree to meet Labor’s 2030 emissions reduction target after Peter Dutton said he didn’t back the goal and would set a new one after the next election. The Australian Energy Council, which represents electricity companies and gas wholesalers and retailers, the Business Council of Australia and the Australian Industry Group all want the certainty of the current position maintained and an end to “climate wars”.
A climate activist group claims today Australia could stop opening new gas projects and still have enough supply to meet domestic needs for 60 years. More on that coming up.
There is a glimmer of hope today for renters, who have been faced with a relentless increase in accommodation costs over the past couple of years. Figures today show rents falling 0.5% in our capital cities and vacancy rates are expected to rise this winter to add to the slightly better outlook.
Executives at some of Australia’s largest companies, meanwhile, have received double-digit pay rises, according to a new report on executive pay. More coming up.
