NBN Co staff on salaries of $200,000 or more received average bonus of almost $50,000

Original article by Josh Taylor
The Guardian Australia – Page: Online : 27-May-21

The issue of bonus payments for employees of government business enterprises is under renewed scrutiny following the release of data on the bonuses received by employees of NBN Co. A total of 3,819 employees shared the $77.5m worth of cash bonuses that NBN Co paid in 2020. Some 2,865 employees who earn between $100,000 and $200,000 received an average bonus of $13,000 each; in contrast, those on annual salaries of more than $200,000 received an average bonus of $49,743. Shadow communications minister Michelle Rowland says the ongoing problems with the national broadband network mean that the "excessive" bonuses are not justified.

CORPORATES
NBN CO LIMITED

$834m in blowouts spur Fortescue exits

Original article by Nick Evans
The Australian – Page: 15 & 18 : 17-Feb-21

Fortescue Metals Group has advised that chief operating officer Greg Lilleyman has left the pure-play iron ore miner in the wake of a sharp rise in the cost of its Iron Bridge magnetite project. Fortescue’s director of projects Don Hyma and Iron Bridge project manager Manie McDonald also recently stepped down. The Iron Bridge project was initially slated to cost $US2.6bn, but this is believed to have blown out by about $US650m. CEO Elizabeth Gaines and CFO Ian Wells will forgo their annual bonuses for 2020-21 due to the cost blowout.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Red card for postal boss

Original article by Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 23-Oct-20

Australia Post CEO Christine Holgate will stand aside pending the outcome of an investigation into revelations that four senior executives were rewarded with luxury watches. Prime Minister Scott Morrison has ordered the independent review after Holgate told a Senate estimates committee that the Cartier watches – which cost $3,000 each – were given to the executives for securing the Bank@Post deal with three of the major banks. Holgate contended that taxpayers’ money had not been used as Australia Post is a commercial business. Some Coalition MPs have called for Holgate to resign, while the Communications Union’s national secretary Greg Rayner says Australia Post’s entire board should step aside.

CORPORATES
AUSTRALIA POST, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY, INFORMATION, POSTAL, PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA

Westpac execs still in the money

Original article by Richard Gluyas, Joe Kelly
The Australian – Page: 1 & 2 : 25-Nov-19

Treasurer Josh Frydenberg has stressed the need for accountability over Westpac’s massive breach of anti-money laundering and counter-terrorism financing laws. He notes that in addition to Austrac’s civil prosecution, there is the potential for Westpac executives and directors to be disqualified under the Banking Executive Accountability Regime. Meanwhile, Westpac chairman Lindsay Maxsted says executives’ short-term bonuses will be frozen; however, their long-term bonuses are not expected to be affected. Other measures taken by Westpac in response to the scandal include shutting down the LitePay international fund transfer network.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

ACTU goes after Qantas over bonus

Original article by David Marin-Guzman
The Australian Financial Review – Page: 8 : 24-Jun-19

The ACTU will lodge legal action against Qantas in the Fair Work Commission on 24 June over its payment of employee bonuses. The ACTU will allege that the airline is discriminating against employees on collective agreements, in that it will only pay a $2,000 bonus once employees sign on to Qantas-endorsed enterprise agreements; the ACTU notes that some collective agreements do not expire until late 2020. Former Qantas chairman Leigh Clifford noted at its 2018 AGM that the same conditions applied to its last three bonuses.

CORPORATES
ACTU, QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIA. FAIR WORK COMMISSION

Rio moves to defer bonus for ex-CEO

Original article by Paul Garvey
The Australian – Page: 15 : 3-Jan-19

Rio Tinto is seeking to further postpone the payment of Sam Walsh’s last short and long-term incentive bonuses until an investigation into a scandal associated with the Simandou iron ore project is completed. The former CEO was due to receive half of his remaining incentive bonuses at the end of 2018; Rio Tinto had advised in February 2017 that payment of the final bonuses would be deferred. International agencies are investigating Rio Tinto’s payment of $US10.5 million ($15m) to a French consultant in 2011.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN FEDERAL POLICE, GREAT BRITAIN. SERIOUS FRAUD OFFICE, UNITED STATES. DEPT OF JUSTICE, PERTH MINT, AUSTRALIA COUNCIL FOR THE ARTS, MITSUI AND COMPANY LIMITED

We should have cut bonuses: CBA chair

Original article by Joyce Moullakis
The Australian – Page: 2 : 22-Nov-18

The Commonwealth Bank of Australia’s executive remuneration came under scrutiny by the financial services royal commission on 21 November. CBA chair Catherine Livingstone has conceded that the bank failed to reduce or withhold bonuses in 2016, despite a series of compliance breaches. She also acknowledged that it might have been appropriate for CBA to note in its latest annual report that former chairman David Turner had declined the board’s request to repay 40 per cent of his directors’ fees as a result of the compliance breaches.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

CommBank CEO Matt Comyn fronts banking royal commission

Original article by Alexis Carey
News.com.au – Page: Online : 20-Nov-18

Commonwealth Bank CEO Matt Comyn has told the financial services royal commission that the major bank has tended to react to misconduct rather than taking action to prevent it in the first place. Comyn also conceded that there are "inherent risks" associated with a staff bonus scheme. However, he struggled to explain why a fixed salary would not be sufficient for the majority of the bank’s employees. The royal commission’s interim report noted that variable pay can encourage a culture of misconduct in the banking sector.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, MACQUARIE GROUP LIMITED – ASX MQG, AMP LIMITED – ASX AMP, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Bonuses risk igniting ABC powder keg

Original article by Deborah Cornwall, Lilly Vitorovich
The Australian – Page: 3 : 7-Nov-18

ABC journalists have raised the prospect of industrial action over severe staff shortages at a time when the public broadcaster’s executives are receiving large bonuses. Members of the Media, Entertainment & Arts Alliance’s ABC house committee have sought meetings with acting chairman David Anderson to express the journalists’ concerns, but he has declined to do so. Liberal senator Eric Abetz is also seeking an explanation for the ABC’s decision to give one executive a bonus of more than $230,000 in 2017-18.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, LIBERAL PARTY OF AUSTRALIA

Thorburn faces $1m pay cut in NAB overhaul

Original article by James Eyers
The Australian Financial Review – Page: 17 & 20 : 20-Sep-18

National Australia Bank will disclose more details of its revised executive pay structure when its annual remuneration report is released in November. Amongst other things, NAB will no longer take into account total shareholder return when determining executive bonuses, although return on equity will continue to be a key metric. NAB chairman Ken Henry says the new pay scheme is aimed at more closely aligning executive remuneration to customer service. CEO Andrew Thorburn is among the executives to be affected by the new remuneration policy.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY