US-based companies have staked their claim to the biggest salaries in the ASX, with five out of the top 10 highest earners this year CEOs of US-domiciled companies, according to ACSI’s latest research on CEO pay in ASX200 companies. It’s the first time in the history of this study that CEOs outside Australia have taken half of the top ten spots, although US-based CEOs have always featured.
ACSI’s latest research shows that greater scrutiny from Australian investors and boards has kept remuneration to a more reasonable level. ASX100 CEO fixed and cash pay levels are continuing to plateau. With a median salary of $1.83m, Australian CEOs are still receiving less than their colleagues in the record year of 2012, who took home a median of $1.95m.
“The diligence of Australian investors and boards continues to mean ASX CEO pay levels have generally avoided the runaway increases we’ve seen elsewhere. It also means that where CEOs appear in the highest paid list, their companies will generally have delivered strong performance over the long-term.” said Ed John, Executive Manager, Stewardship at ACSI.
This year’s research again found that an ASX100 CEO is more likely to lose their job than their bonuses. In fact, aside from Covid’s FY20, every year for the past 11, ASX100 CEOs have received a median bonus of between 60% and 77% of maximum bonus levels. This year, only five CEOs didn’t get a bonus at all.
“Investors cannot become complacent, with clear evidence that CEO bonuses continue to be a ‘given’ in Australia’s largest companies. This year investors will need to remain vigilant to ensure that we do not see the inflation in CEO salaries or a pay ‘break-out’ that we see in markets like the US.” Mr John said.
Key findings:
- US-based CEOs are taking over the highest paid list. US CEOs account for five of the top 10 highest paid in the study with Life 360 CEO Chris Hulls, ResMed CEO Mick Farrell and News Corporation CEO Robert Thomson topping the list.
- The highest paid Australian-based CEO in the ASX200 was Vikesh Ramsunder, CEO of Sigma Healthcare. This was his first appearance in the top 20 and follows the company’s merger with Chemist Warehouse. 7 CEOs of Australian companies were among the top 20 highest paid for the third year running.
- New CEOs in the top 20 included companies that demonstrated significant increases in value including CEOs Chris Hulls of Life 360, Jon Pilcher of Neuren Pharmaceuticals and Raleigh Finlayson at Genesis Mineral. Financial performance was variable across the top 20 group.
- Greater scrutiny of fixed pay among CEOs of large companies has seen ASX100 CEO fixed pay stagnate and decline in real terms. The median ASX100 CEO’s fixed pay for FY25 was $1.83m which, even after a 4% increase over the FY24 median, was below the record median of $1.95m in FY12.
- The median bonus outcome for an ASX100 CEO was 70.7% of maximum in FY25. In the 11 years the ACSI study has collected data on bonuses as a proportion of maximum, the median outcome for ASX100 CEOs has been between 60% and 77% of maximum every year other than FY20, the first year of COVID.
- The median total realised pay for an ASX100 CEO was $4,800,898 which was up from $4,153,555 the previous year. The average realised pay for an ASX100 CEO was $6,005,219 up from $5,732,321 the previous year.
- This year’s sample confirms once more that an ASX200 CEO is more likely to depart than receive no bonus. 10 ASX100 CEOs left their roles and just five CEOs eligible for a bonus received zero.