22 Aug 2012

Executive bonuses shrink - survey

11:47 am on 22 August 2012

Pay for chief executives has risen nearly 10% in the past year, but bonuses have shrunk by 60% as executive salaries and performance face intense scrutiny.

A survey of remuneration for chief executives and executives by Strategic Pay says median base salaries have risen by $28,000 to $315,000.

But their incentives and bonuses have dropped by 58% to $65,000, and the gap between the pay of private-sector bosses and their public-sector peers has narrowed to a difference of 0.5%.

At the same time, fees paid to company non-executive directors fell for the first time in four years to $33,600, while board chair payments rose nearly 4% to $65,000.

Strategic Pay says the growing gap is in line with overseas trends.

Managing director John McGill says the growing demand for transparency on executive pay and board fees is a legacy of the global financial crisis.