Back in the Dark Ages
The heavy handed tactics proposed by the BCA last week to counter Federal Government moves to give shareholders a vote on the pay of company executives has gladly been dismissed as being of a 'medieval mindset'. However, the Australian Foundation Investment Company (AFIC) AGM this week highlighted how much more needs to be done to make the voting system open and democratic...even though a vocal majority voted against a 250 percent pay rise for the CEO, the motion was passed via proxies. The government's proposals are a start but not nearly enough to drag big business practices out of the dark ages.
PICKS OF THE WEEK
BCA's criticism of pay polls discounted
A push by the Business Council of Australia to block Federal Government moves to give shareholders a vote on the pay of senior company managers has been dismissed as unlikely to succeed.
Full story: http://www.smh.com.au/text/articles/2003/09/30/1064819928983.htm
Meeting approves payouts to AFIC chiefs
Shareholders lashed out at the board of the Australian Foundation Investment Company over executive pay rises at an unusually heated annual meeting.
Full story: http://www.theage.com.au/articles/2003/10/01/1064988269738.html
Westfield boss earns $13.4m
Frank Lowy, chairman of the Westfield group, has cemented his already lofty status as the nation's highest paid executive, taking home $13.4 million for the 2002-03 year.
Full story: http://www.theage.com.au/text/articles/2003/09/30/1064819927744.htm
Ziggy gets 'modest' pay rise
TELSTRA chief executive Ziggy Switkowski received a pay increase of less than one per cent in 2002-03 but still had close to two-and-a-half million reasons to smile.
Full story: http://australianit.news.com.au/articles/0,7204,7428450^15320^^nbv^,00.html
$2.3m for Computershare MD
A former managing director at share registry Computershare was paid almost six times as much as his boss after he resigned from the company's European branch and won a $1.6 million severance payout.
Full story: http://www.theage.com.au/articles/2003/10/01/1064988268586.html
Smorgon chief stitches up $2m redundancy deal
Smorgon Steel has paved the way for chief executive Ray Horsburgh to receive as much as $2 million in redundancy payments if he is ever pushed out as a result of a change in control of the company.
Full story: http://www.theage.com.au/articles/2003/10/01/1064988268568.html
Women miss out on CEO roles: census
Less than five per cent of women in Australia's top 200 listed companies hold positions which ultimately lead to CEO or board appointments, a new census has found.
Full story: http://au.news.yahoo.com//031001/2/lwiz.html
Pan workers doomed
THE liquidator of Pan Pharmaceuticals is expected to begin laying off workers today, despite the company's factory getting a clean bill of health from the regulator, and looming court action to try to stop the wind-up of the business.
Full story: http://www.theaustralian.news.com.au/common/story_page/0,5744,7435985%255E462,00.html
LEGISLATION NEWS
High-level row on chiefs' pay
The Business Council of Australia has disputed a government plan to allow shareholders a non-binding vote on senior executive pay packets, warning that it could lead to boards being sued.
Full story: http://www.theaustralian.news.com.au/common/story_page/0,5744,7426543%255E643,00.html
Telstra boss a no show for Senate inquiry
The chief executive of Telstra has been criticised for not agreeing to appear before today's Senate inquiry into the corporation's full privatisation.
Full story: http://au.news.yahoo.com//031001/21/lwkg.html
AUSTRALIA'S HIGHEST PAID EXECS 2002-2003
This list care of our friends at Crikey¡K www.crikey.com.au
„h $30m - Brian Gilbertson, ousted BHP Billiton CEO
„h $26.3m - Peter Chernin, News Corp COO
„h $20m - Rupert Murdoch, News Corp exec chairman
„h $13.4m - Frank Lowy, Westfield exec chairman
„h $8m - David Higgins, sacked Lend Lease CEO
„h $6.49m, Wal King, Leighton, CEO
„h $6.18m, Keith Lambert, sacked Southcorp CEO
„h $6.1m - Mikos Salomon, deputy BHP CEO
„h $5.79m - Michael Chaney, Wesfarmers CEO
„h $5.6m Steve Jones, Suncorp (ex-CEO)
„h $5.2m - Chip Goodyear, new BHP CEO
„h $5.2m - Russell Jones, Amcor CEO
„h $5.2m - Brian McNamee, CSL CEO
„h $4.1m - Sir CK Chow, Brambles (resigned)
„h $4m - Peter Lowy, Westfield America boss
„h $3.77m - John Alexander, PBL Meda
„h $3.77m - Steven Lowy, Westfield Trust CEO
„h $3.76 - Peter Yates, PBL, $3.77m
„h $3.7m - John Mulcahy (new CEO), Suncorp
„h $3.43 - Roger Corbett, Woolworths CEO
„h $3.1m - Geoff McGrath (retiring MD), GWA Intnl
„h $2.8m - Tom Degnum, Burns Philp
„h $2.5m - David Murray, CBA
„h $2.413m - Ziggy Switkowski, Telstra
„h $2.34m - Michael Hawker, IAG
„h $1.9m - Ian Wightwick, Paperlinx
„h $1.77m - Graham Burke, Village Roadshow
„h $1.7m - John Kirby, Village Roadshow
„h $1.7m - Robert Kirby, Village Roadshow
„h $1.68m - Greg Martin, AGL
„h $1.6m - Geoff Dixon, Qantas
„h $1.6m - Warren Wilson, TAB
„h $1.31m - Stephen Gillies, Downer EDI
„h $1.23m - Barry Fitzpatrick, Adelaide Bank
„h $1.16m - Jack O¡¦Mahony, Cochlear
„h $1.12m - John Ingram, Crane Group
GETTING MORE: TOP EXECS WHO RECEIVED A PAY RISE IN 2003
Greater than 100% Increase
176% rise - John Alexander, PBL Media, $1.37m to $3.78m (incl $2m bonus)
109% rise - Russell Jones, Amcor: $2.39m to $5m
Between 50% and 100% Increase
81% rise - Rupert, Lachlan and James Murdoch, News Corp: $US10.36m to $US18.79m
51% rise - Peter Yates, PBL, $2.5m to $3.77m
Between 25% and 50% Increase
48% rise - Michael Hawker, IAG, $1.58m to $2.34
38% rise - Paul Underwood, TAP Oil, $480k to $662k
30% rise - Ian Wightwick, Paperlinx: $1.5m to $1.95m
28% rise - CK Chow, Brambles: $3.19m to $4.1m (since resigned)
Between 10% and 25% Increase
21% rise ¡V Jack O¡¦Mahony, Cochlear, $960k to $1.16m
18% rise - Graham Burke, Village: $1.5m to $1.77m
Up to 10% Increase
4% - Roger Corbett, Woolworths, $3.3m to $3.43m
3% - Peter Chernin, News Corp: $US17.3m to $US17.9m
0.5 % - Ziggy Switkowski, Telstra: $2.4m to $2.413m
GETTING LESS: TOP EXECS WHO RECEIVED A PAY CUT IN 2003
Over 50% Decrease
64 % fall - David Murray: CBA: $7m to $2.5m
57% fall ¡V Graham Turner, Flight Centre: $300k to $130k (owns 20% of co.)
Between 25% and 50% Decrease
36 % fall - Geoff Dixon: Qantas: $2.5m to $1.6m
30 % fall - Brian McNamee: CSL: $7.5m to $5.2m
32% fall - Wal King, Leightons, $9.04m to $6.13m
26 % fall - Tom Degnum: Burns Philp: $3.8m to $2.8m
25.3% fall - Michael Chaney, Wesfarners, $7.9 to $5.79
Between 10% and 25% Decrease
19 % fall - John and Robert Kirby: Village Roadshow: $1.7m each (both down from $2.1m)
SATIRE
A young banker decided to get his first tailor made suit. So he went to the finest tailor in town and got measured for a suit.
A week later he went in for his first fitting. He put on the suit and he looked stunning, he felt that in this suit he can do business.
As he was preening himself in front of the mirror he reached down to put his hands in the pockets and to his surprise he noticed that there were no pockets.
He mentioned this to the tailor who asked him, "Didn't you tell me you were a banker?"
The young man answered, "Yes, I did."
Upon which the tailor replied ¡§have you ever seen a banker with his hands in his own pockets?¡¨
------------
One day, the children were in class when the teacher said they were going to talk about careers and what their parents did for a living. A number of hands went up.
"Connie, you go first," said the teacher.
Connie said, "My daddy¡¦s a doctor, and my mommy stays at home and takes care of my little brother."
"That's terrific!", said the teacher.
"Susan, you¡¦re next. What do your mommy and daddy do for a living?"
Susan replied, "My daddy¡¦s a policeman, and my mommy is a nurse."
"That¡¦s wonderful," replied the teacher. "Johnny, you¡¦re next."
Johnny proudly boasted, "My daddy¡¦s a piano player in a house of ill repute!"
The teacher, horrified at such a statement, quickly changed the subject and moved on to something else.
That evening, the teacher went to Johnny¡¦s house, and was greeted by his father. She related to him the events of the day, including Johnny¡¦s boast of his employment. She asked for an explanation.
"Oh, that¡¦s easy," replied Johnny¡¦s father, "I¡¦m a lawyer, but how do you explain that to a seven-year old?"
For further information
Contact: Chris Owen
Email: c.owen@labor.org.au
WWW: www.bosswatch.labor.net.au
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