CEO bonuses fall in 2011
Bonuses paid to chief executive officers (CEOs) of Australia's top companies fell significantly in 2011, reflecting a more mature conversation about executive pay between company boards and their shareholders.
This is according to new research by the Australian Council of Superannuation Investors (ASCI), which measured salary and bonus levels for CEOs in the Top 100 companies listed on the Australian Securities Exchange (ASX).
While fixed pay of chief executive officers (CEOs) in Australia's top companies remained steady in 2011, bonuses fell materially in the same period, the study found.
In fact, average bonuses ($1.3 million in 2011) fell to their lowest levels since 2004, although close to 90 per cent of CEOs still received one.
ACSI CEO Ann Byrne attributed the fall to a more mature conversation on executive pay that is taking place between boards and investors.
"It is clear that directors began listening to shareholder views on bonus sizes during 2011 and began making the adjustments that have continued into the first part of 2012," she said.
Overall, the average cash pay for the Top 100 CEOs declined by 8.9 per cent from 2010 levels to $3.1 million, which reflects the fall in bonus sizes, the study has found.
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