Salary Survey SPECIAL REPORT
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salary survey SPECIAL REPORT businessnews.com.au SALARY SURVEY FEATURE Incentives drive executive pay Business News’s in-depth remuneration survey shines a light on the state’s high- income earners. $9.96m - IAN TESTROW $7.76m - ROB SCOTT Emeco Holdings Wesfarmers WA’s highest-paid CEO for second year running, despite Total income up 15%, boosted by long-term equity incentives 12% fall in total remuneration Mark Beyer [email protected] @AMarkBeyer 6-PAGE FEATURE HE ravages of COVID-19 have done little to dent T the incomes of chief exec- utives in Western Australia. This year’s Business News remuneration survey has identified 103 Perth executives (or executives at Perth-based companies) with total income of more than $1 million last financial year. That’s up from 80 last year and $6.11m - ELIZABETH GAINES $4.13m - CHRIS SALISBURY one of the highest totals since the Fortescue Metals Group Rio Tinto survey started 10 years ago. Cash bonus of $1.04m was the highest paid in WA The former divisional boss was paid more than most This group included 27 people chief executives with a base salary of more than $1 million. More than a dozen people Mr Testrow’s total remuneration However, the company also remuneration above $3 million, woman with total remuneration had annual bonuses in excess of was even higher in FY19, when he noted that the ultimate value of according to disclosures in its of $6.1 million. $500,000, and many executives benefitted from both a higher long-term incentive awards was annual report. Those four chief executives are got a big boost from long-term annual bonus and larger equity determined by the Emeco share It was a similar story at other almost assured of being listed incentives, such as share options incentives. price once the rights had vested big companies such as Woodside among the state’s highest earners, and performance shares. His remuneration largely reflects and were converted into shares. Petroleum, South32 and Fortescue because they start with high fixed In practice, the actual value the value of equity incentives Metals Group, all of which had remuneration. of these incentives can be very awarded when Emeco was Big local plays several executives earning $2 Mr Coleman’s base salary last different from their estimated undertaking a major restructure The top end of the list is million or more. financial year was $2.6 million, up-front value, as discussed on and completing two acquisitions. dominated by the state’s largest Woodside boss Peter Coleman the highest in the state (see table, page 27. Emeco’s current remuneration companies. had total income of $7.4 million (he next page). For the second year running, policy specifies that incentives Wesfarmers managing director is invariably one of WA’s highest The incentives awarded to the state’s highest paid executive awarded to Mr Testrow can be Rob Scott increased his total paid executives). chief executives – both annual was Emeco Holdings managing no more than 200 per cent of his income to $7.7 million, helped by a South32 chief executive and long-term – are typically director Ian Testrow. annual fixed remuneration. jump in the value of his long-term Graham Kerr was not far behind set as a multiple of fixed His total remuneration of $9.9 With a base salary of $1.1 equity incentives. with total income of $7.3 million. remuneration. million included long-term equity million, that means his incentives He was one of five Wesfarmers Fortescue chief Elizabeth That means executives with incentives worth $8.1 million. are capped at about $2.1 million. executives to have annual Gaines was the state’s highest-paid a high fixed remuneration have 24 | November 30, 2020 November 30, 2020 | 25 PB | November 30, 2020 November 30, 2020| PB FEATURE SALARY SURVEY FEATURE Incentives drive executive pay Business News’s Ms Farrell, who retired at the end of September 2019, was paid in-depth $US1.9 million ($A2.8 million) Data & Insights for the 10 months to the end of remuneration September. Rio’s biggest competitor, BHP, survey shines HIGHEST BASE SALARIES* did not disclose the remuneration a light on the of its top Perth-based executive, Company Executive $ Edgar Basto. state’s high- That reflected the different Woodside Petroleum Peter Coleman 2,652,791 ways the two global mining income earners. giants interpret their reporting Wesfarmers Rob Scott 2,335,746 obligations. Rio provided remuneration Crown Resorts Barry Felstead 2,329,026 details for 12 senior executives $9.96m - IAN TESTROW $7.76m - ROB SCOTT $7.37m - PETER COLEMAN while BHP provided details for Fortescue Metals Group Elizabeth Gaines 1,825,000 just five executives. Emeco Holdings Wesfarmers Woodside Petroleum Mr Basto is likely to be included WA’s highest-paid CEO for second year running, despite Total income up 15%, boosted by long-term equity incentives Base salary of $2.65m remains the highest in WA South32 Graham Kerr 1,713,000 in that list next year, since he has 12% fall in total remuneration been promoted from head of the Iluka Resources Tom O'Leary 1,400,000 WA-focused iron ore division to a position running Australian Northern Star Resources Bill Beament 1,375,000 minerals. Mark Beyer Santos also has strong ties to [email protected] Omni Bridgeway Andrew Saker 1,228,997 @AMarkBeyer WA, as the state’s largest domestic gas supplier. Mineral Resources Chris Ellison 1,200,000 6-PAGE FEATURE Its top Perth-based executive HE ravages of COVID-19 is vice-president offshore Brett NRW Holdings Jules Pemberton 1,178,997 have done little to dent Darley, whose total remuneration T the incomes of chief exec- Sandfire Resources Karl Simich 1,100,000 was $US1.2 million ($A1.7 million). utives in Western Australia. Another interstate company This year’s Business News Austal David Singleton 1,093,833 with a strong Perth connection is remuneration survey has identified Crown Resorts. 103 Perth executives (or executives Emeco Holdings Ian Testrow 1,060,684 Its chief executive Australian at Perth-based companies) with Resorts, Barry Felstead, who is total income of more than $1 based in Perth, was paid $2.87 * Perth-based chief executives ranked by base salary. million last financial year. Source: Business News Data & Insights million for the year to June 2020. That’s up from 80 last year and $6.11m - ELIZABETH GAINES $4.13m - CHRIS SALISBURY $3.16m - BILL BEAMENT The most notable aspect of his one of the highest totals since the Fortescue Metals Group Rio Tinto Northern Star Resources Go to businessnews.com.au/executive-salaries remuneration package was the survey started 10 years ago. Cash bonus of $1.04m was the highest paid in WA The former divisional boss was paid more than most Base salary nearly doubled to $1.4m but total income to learn more about our upgraded data on high base salary. This group included 27 people chief executives fell slightly executive remuneration. Mr Felstead ranked number with a base salary of more than three in Crown’s management $1 million. structure, behind former More than a dozen people Mr Testrow’s total remuneration However, the company also remuneration above $3 million, woman with total remuneration a head start when it comes to moved in the opposite direction. officer at booming ‘buy now, pay based listed companies. executive chairman John had annual bonuses in excess of was even higher in FY19, when he noted that the ultimate value of according to disclosures in its of $6.1 million. getting big bonuses. His base salary nearly doubled later’ company Afterpay. It also includes a handful of Alexander and current managing $500,000, and many executives benefitted from both a higher long-term incentive awards was annual report. Those four chief executives are However, that pattern does not last financial year to $1.4 million He has a modest base salary Perth-based executives employed director Ken Barton. got a big boost from long-term annual bonus and larger equity determined by the Emeco share It was a similar story at other almost assured of being listed always hold. Mr Beament also lifted his of about $320,000, but the value by companies based elsewhere, Despite that, he was paid an incentives, such as share options incentives. price once the rights had vested big companies such as Woodside among the state’s highest earners, Mineral Resources managing annual performance bonus from of his equity incentives lifted including Rio Tinto, Crown unusually high base salary of $2.2 and performance shares. His remuneration largely reflects and were converted into shares. Petroleum, South32 and Fortescue because they start with high fixed director Chris Ellison increased zero to $490,000, but saw a big his total remuneration to an Resorts and Santos. million. In practice, the actual value the value of equity incentives Metals Group, all of which had remuneration. his total remuneration to $4.3 decline in his long-term incentives, extraordinary $31.6 million. Chris Salisbury and Joanne Big local plays Only two other Perth of these incentives can be very awarded when Emeco was several executives earning $2 Mr Coleman’s base salary last million despite a cut in his base meaning his total remuneration The country’s highest-paid chief Farrell were Rio Tinto’s top Perth executives, Woodside’s Mr different from their estimated undertaking a major restructure The top end of the list is million or more. financial year was $2.6 million, pay from $1.5 million to $1.2 barely changed.