CFMEU - Mining and Energy Division
Australians getting poor value for money from CEOs and company directors
New research by the broker CLSA provides further evidence of the productivity crisis amongst Australian managers and directors.
The study of 864 companies in the Asia Pacific region finds Australian company directors are paid a greater share of net profit than their regional counterparts.
Screening across 200 Australian listed companies, the study also finds no link between total executive pay and three year total shareholder return or return on equity.
"This research shows that Australians tend to get very poor value from their CEOs and company directors," CFMEU National Secretary, Michael O'Connor said.
"While the Australian business lobby is forever trying to draw a false link between the Fair Work Act and productivity, it turns out that the main productivity challenge is to be found amongst our senior executives.
“This should serve as a wake up call to the business lobbyists and CEOs who insist on issuing alarmist messages about wages in Australia. It is CEOs and company directors who need to produce more value to justify their exorbitant salaries.
"Senior treasury officials such as Dr David Gruen have already identified that productivity could be improved eight per cent if Australian managers were in the same league as their colleagues in the US and Germany.
"It's time for Australian corporate leaders to end the blame game and improve their own performance."
Further comment: Michael O'Connor 0418 550 831
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