Monday, June 15, 2015

New Zealand's CEOs on a roll

A survey showing chief executive salaries increased by an average 10 per cent between 2013 and 2014.

The figures are in the New Zealand Herald's annual CEO pay survey, which also shows the average chief executive salary during 2014 was $1.64 million. A record 11 received at least $2m during that year and the top earner was ANZ's David Hisco on $4.26m. Fonterra boss Theo Spierings isn't far behind on $4.18 million. Other top earners included Meridian Energy's Mark Binns and SkyCity Entertainment's Nigel Morrison. George Frazis of Westpac, Nuplex's John Hirst, Telecom boss Paul Reynolds were paid in excess of $5 million.

"Many workers haven't had a pay increase at all," said Council of Trade Unions secretary Sam Huggard who also added it isn't just chief executives who are doing well. "The average income of the top 0.1 per cent is estimated to have risen from $665,000 to $892,000 between 2011 and 2013 - those are the latest available figures from IRD." 


In 2002, a New Zealand CEO’s average pay was 15.2 times an average worker’s income, but by 2012 the CEOs of the top listed New Zealand companies were earning 26.4 times as much as their average employees. Dairy farmers are finding it tough with the low global milk price and Fonterra workers, whose jobs are facing the chop, will be looking at the Fonterra CEO’s $4.18 million pay packet, a $660,000 rise in just one year. 

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