Termination payouts for CEOs in Australia's largest listed companies have hit a 15-year low, according to the Australian Council of Superannuation Investors. The total payouts dropped to $8.4 million in the 2024 financial year, down from $33.5 million the year before. This decline is attributed to fewer departures and a decrease in the average payout per CEO to $1.4 million from $1.97 million.

ACSI's executive manager of stewardship, Ed John, highlighted that changes in the Corporations Act in 2009 have led to a continuous decrease in termination payouts. Despite a slight dip in CEO salaries, bonuses have remained consistent. In the ASX 100 companies, CEO salaries are 55 times higher than the average Australian worker's earnings, showing an improvement from previous years.

CEO Pay Comparison

Compared to other markets like the UK and the US, Australia's CEO pay is relatively lower. The top earners in the ASX 100 companies include Robert Thomson from News Corporation and Shemara Wikramanayaka from Macquarie Group. The median realized pay for ASX 100 leaders was $4.15 million, up from $3.96 million in 2014.

Impact of Two-Strike Rule

The two-strike rule against remuneration has played a role in curbing pay rises for CEOs. This rule holds directors accountable for executive salaries and bonuses, ensuring that shareholders have a say in the remuneration report. Corporate governance expert Helen Bird noted that this rule has helped maintain a cap on CEO salaries in Australia.

CEO Bonuses and Trends

Most CEOs received a bonus in 2024, with only five missing out entirely. The median CEO bonus was paid at around 66% of the maximum, reflecting a long-term trend. While salaries at larger companies have been relatively stable, smaller listed companies have seen an increase in CEO pay over the years.