Australia's top chief executives earn an average of $4.75 million — or 78 times more than the average Australian worker.
The stark finding comes from corporate adviser Conrad Liveris, who has examined the remuneration of executives at Australia's 100 biggest public companies.
But that's not all.
- Male CEOs earn almost $1 million more than women CEOs, on average.
- CEO earnings have climbed 46 per cent faster than typical workers' earnings over the past 12 months.
The earnings gap
Here's how the gap between total average remuneration for ASX100 chief executives compares to average weekly earnings.
Mr Liveris says Australian corporations' approach to executive remuneration is outdated, as it's based on a model created for corporations in the 1980s and 1990s.
"It's barely been reviewed for decades even though the business environment has changed.
"In this time of change and innovation, decision makers need to better analyse the contributions being made to their corporation's performance and examine how they can share the benefits more widely."
The growth gap
Australians' wages are stubbornly stagnant, but it's a quite different story for CEOs.
Over the past couple of years, CEO remuneration has climbed 46 per cent more, year on year, than average Australian incomes.
Mr Liveris believes corporations need to align increases in executive remuneration to Australia's Wage Price Index, in an effort to win back trust in the country's biggest businesses.
The gender gap
You might assume that women who become CEOs have broken through the glass ceiling. But even at this level, there remains a large gap in earnings.
And keep in mind: there are only seven women leading ASX100 companies.
The highest-earning woman CEO is Susan Lloyd-Hurwitz from Mirvac, who took home a total package of $5.3 million.
That compares to Alan Joyce from Qantas, the top-earning man who is earning $24.6 million.
Notably, though, some women executives who hold other positions are out-earning their fellow CEOs. For example:
- The head of Macquarie Asset Management, Shemara Wikramanayake, earned $17.3 million.
- Jetstar CEO Jayne Hrdlicka (under the Qantas umbrella) earned $8.1 million.
- Nicole Sorbara, Macquarie's chief operating officer, earned $5.8 million.
"The highest paid men in the ASX100 tend to be group chief executives, while women tend to lead business units," Mr Liveris explains.
The top earners
Alan Joyce from Qantas may have received the highest total remuneration package, but Wesfarmers' Richard Goyder took home the highest salary.
