Has paying market rates for executives worked for the Australian Securities and Investments Commission (ASIC)?
The jury is out because while the Government moved ASIC employment outside of the terms of the Australian Public Service more than a year ago, and the Royal Commission and a number of other factors has made it too early to say.
But, as a former Queensland Premier was known to say “don’t you worry about that” because the recent capability review of the Australian Prudential Regulation Authority (APRA) has suggested that it, too, should be removed from strictures of Australian Public Service employment conditions.
The capability review, led by someone who should know the remunerative value of a Government appointment, former Australian Competition and Consumer Commission (ACCC) chairman, Graeme Samuel, recommended “the Government should remove APRA from the application of the APS Workplace Bargaining Policy.”
It added that, “APRA should engage with the Government to consider ways to enable greater variation in remuneration levels.”
Well, Outsider has always believed that if you pay peanuts you’ll get monkeys, but he also recalls that the former chairman of APRA, Dr John Laker, was the highest paid head of a Government authority during his tenure and the victims of the Trio/Astarra debacle will attest to how that worked out.
On that basis, perhaps the most senior financial services regulatory executives should be paid on results.