[April Bradford]

CEOs earning 85 times more than the average pensioner? Outrageous disparity in earnings revealed!​

We’ve finally cracked how to earn 85 times more than your pension: become a CEO.

Pensioners are getting the short end of the stick. Source: SDC​

With the price of goods and services rising, we thought it would be interesting to take a look at the wages of the CEOs running major Australian corporations.

The Australian Bureau of Statistics (ABS) found that a wage of $1748.40 a week is the ‘average’ for everyday Australian workers. This means anyone on an annual salary of $91,000 or above is classed as an above-average earner. This number looks different depending on age, gender and location.

When working in the public sector, males earn an average of $2,025.20 per week while their female colleagues earn an average of $1,799.30 (ABS 2022).

But this isn’t entirely accurate because CEOs are included in this calculation. The data from the 2021 census shows us that the median annual income in Australia was $41,900 or $805 per week. This figure is less than half the reported average. For the sake of accuracy, we’ll use the ABS’s calculated median weekly wage which they state is $62,400 or $1200 per week. Still a far cry from $90k ($1800 per week).

This amount is significantly lower than the $90k average as it captures the median income and excludes outliers such as the 1 per cent eg. CEOs. So an accurate glimpse into the average Australian wage is $62.4k per year.

So if we pin the median Australian salary at roughly $62.4k, how does that compare?

To figure this out, we’re looking at the ACSI CEO Pay Report which is compiled yearly using publicly available documents on ASX200 CEOs. There are some exceptions like companies that didn’t provide a remuneration report as well as CEOs who were appointed mid-year. These are excluded from the list.

Halve the pink circle to get an idea of the pension payment. Source: SDC​

Topping the list is Australian Afterpay duo Anthony Eisen & Nick Molnar who took home a salary of $264 million (yes, million!) in the 2021 financial year. This is 4,234 times more than the average worker.

Let’s look at Woolworths as a detailed example.
A Retail Level 1 employee earns $799.90 for a 38-hour week. Casual workers receive an additional 25 per cent loading on top of their base pay. This takes them to $999.875 per week. Keep in mind that we know the median weekly wage is $1200. So already, we can see a level 1 employee is earning less. Of course, this would be a worker without any existing skills (in this area) which impacts the comparison.

So what about Brad Banducci, the Woolworths Group CEO? According to the ACSI CEO Pay Report, Brad took home $11,788,098 in the 2021 financial year. Yes, that’s nearly 12 million dollars. And compared to his average level one supermarket worker? His pay was 227 times that of his workers and 188 times the broader median.

This isn’t surprising as Brad is the 10th highest-paid CEO in Australia. The average CEO salary is allegedly $2.2 million which is still 25 times the ‘average’ weekly pay.

Now, let’s look at the Australian pension.

As you well know, singles receive a maximum of $987.60 per fortnight ($493.8 per week) while couples receive a maximum of $1488.80 per fortnight ($744.4 per week) combined. This is woefully inadequate. On $2.2 million, the average CEO is earning more than 85 times an Australian pensioner. Even the median Australian wage is 2.4 times the sum pensioners are provided.

Pensioners receive well below the Australian median wage. Source: SDC​

So who’s taking home the big bucks?

​

It’s a bit overwhelming seeing the difference, isn’t it? Source: Flourish​

Those teeny tiny squares in the bottom right-hand corner? Yeah, those are our everyday Aussies and pensioners.

The Afterpay CEO duo are in the lead. Source: SDC​

Top 20 Highest Paid CEOs (according to ACSI CEO Pay Report)
1. Anthony Eisen & Nick Molnar, Afterpay ($264,222,249)
2. Paul Perreault, CSL ($58,914,531)
3. Mick Farrell, ResMed ($37,403,034)
4. Greg Goodman, Goodman Group ($37,105,490)
5. Robert Thomson, News Corporation ($28,690,792)
6. Michael & Matthew Heine, Netwealth Group ($25,846,554)
7. Alex Dorsch, Chalice Mining ($17,806,728)
8. Shemara Wikramanayake, Macquarie Group ($14,693,343) - highest earning female
9. Jack Truong, James Hardie ($13,321,625)
10. Brad Banducci, Woolworths Group ($11,788,098)
11. Richard Weil, Janus Henderson Group ($11,483,165)
12. Ron Delia, Amcor ($11,325,798)
13. Elizabeth Gaines, Fortescue Metals Group ($11,119,309)
14. Vincent English, Megaport ($10,676,056)
15. Mike Henry, BHP Group ($10,464,599)
16. Lewis Gradon, Fisher & Paykel Healthcare ($9,878,197)
17. Chris Ellison, Mineral Resources ($9,452,857)
18. Magnus Nicolin, Ansell ($9,292,432)
19. Andrew Barkla, IDP Education ($9,252,820)
20. Kevin Gallagher, Santos ($9,137,037)

Obviously, the cost of living cannot be placed on the shoulders of a few CEOs. First and foremost, our government should be taking action. But it certainly gives pause when you look at the numbers and compare your situation to the 1 per cent.

Who is more to blame? Perhaps we turn our attention to politicians who earn a base salary of $217,060 per year, so three and a half times the median Australian salary. They also receive generous motor vehicle and international travel allowances ($10k up). The folks over at Pedestrian did the maths for us, ‘Australian federal parliament consists of 151 MPs (or members) and 76 senators, so if they were all paid the base rate that’d be a total annual expense to taxpayers of $49,272,620.’ Yes, that’s 49 million.

But, of course, $217k each is not nearly enough (pfft) so they receive bonuses.

Who’s receiving the most?

Don’t forget the $2 million allowance! Source: SDC
​

1. Prime Minister Anthony Albanese ($549,250)

He also received a hefty $2 million allowance for transport and meals. This places him as the fifth highest-paid politician in the world.

2. Opposition leader Peter Dutton ($401,000)

He also receives a $2 million allowance.

3. Deputy PM Richard Marles ($433,575)

If you’re interested in reading more, you can find the full list of Parliamentarians' expenditures here.

Now, members, if you stuck with me through that, thank you. That became longer than I anticipated. I’m interested in hearing your thoughts on the average Australian wage, pension rate and the excess our CEOs and politicians earn. It would be nice not to have to know the price of a loaf of bread, but for most of us, that’s simply not reality. How does the low pension payment impact your decisions and day-to-day life?

 

[Happymad]

Not all pensioner’s get the full amount after working till we we’re both 70 we now get $151 dollars a fortnight each

 

[oliver]

Enough to take a serious look at why bother to keep going aye

 

[Capsam]

If I did not have a private rental agreement I would definitely be one of those older single women who would become homeless. I am able to manage on the single pension but only because there are many things I do without. All due bills & rent are paid first, then I know what I have left. I buy some goods & clothes at op shops for example. The hardest thing is that a trip to the theatre is a year long saving job & there is NO chance of a holiday! Still, there are people in the world who are worse off than me especially mothers living in cars with their children!

 

[Ricci]

I try hard to not complain and to be grateful for whatever I receive but it's hard and getting harder, and when I sit and think of it, why should I be grateful? I worked all my life, paid all my dues in the belief that retirement would be a breeze. I saw all those pictures of happy older carefree couples, enjoying life to the full. What a crock. The dream and the reality is a chasm too wide to fill.

 

[Happymad]

I try hard to not complain and to be grateful for whatever I receive but it's hard and getting harder, and when I sit and think of it, why should I be grateful? I worked all my life, paid all my dues in the belief that retirement would be a breeze. I saw all those pictures of happy older carefree couples, enjoying life to the full. What a crock. The dream and the reality is a chasm too wide to fill.

Quite agree

 

[Suzanne rose]

I'm not on a pension yet, but I am on centrelink first time in my life. I have always worked but I am now unable due to on going health issues due to the mistake of a surgeon. I'm on jobseeker and need to hand in a medical certificate every 12 weeks. There is not alot of support out there for people in my circumstance
I was the bread winner as my husband has been ill for the past 15 years , he has never taken a government payment.
I'm all for the ministers receiving high wages as there is alot of responsibility and high demands in their jobs.
A very close friend of my husbands is an ex nsw premier who actually after leaving his position refused taking with him any of his perks. They are aloud to still have use of a car for 12 months
I think it's not the wages but all the perks that they get .
It does make me mad when the everyday person gets a very small wage rise then you hear of the politicians getting thousands in a pay rise.

 

[ElizaKaye]

The greedy CEO's - no one coud jusity being paid as much as most of them, is the reason why the cost of goods and service have gone up so much. Something needs to be done about it. Capitalism is not working. Even the politicians can't justify their wages, and they even accepted two pay rises during Covid, while eveyone else suffered.