CEOs 'ridiculously overpaid': former Westpac boss   :(

March 1, 2019
Sydney Morning Herald
   

Former Westpac boss David Morgan says company chief executives are "ridiculously overpaid" but the intense pressure of the job causes some to "literally weep" in private.

A new biography of the former bank chief and senior Treasury official details how he took to mentoring executives after his time leading the bank, in part because life as a CEO was "seldom openly discussed".


"Most people don't talk about it honestly," Dr Morgan said in an interview with the book's author, journalist Oliver Brown.

"Yes, CEO life is very glamorous. You're recognised, you're given the best seats in restaurants, and you're ridiculously overpaid. But you need stamina. As the leader, you rarely play the grand final, but more an endless succession of semi-finals," Dr Morgan said.


"You can hardly ever relax, and that creates intense strain. Behind closed doors, some CEOs literally weep."   :P

Dr Morgan was chief executive of Westpac between 1999 and 2008, and his pay topped $10 million in 2007 before he was succeeded by Gail Kelly.

The biography, David Morgan: An Extraordinary Life, was launched at Westpac's office in Kent St in Sydney on Thursday night.

The function was attended by senior business and political figures including former prime minister Paul Keating, former premier Bob Carr and his wife Helena, Westpac CEO Brian Hartzer, Dr Morgan's wife Ros Kelly, a former Labor minister, former Treasury secretary and Westpac chairman Ted Evans, former Treasury secretary Martin Parkinson, and Mike Cannon-Brookes snr, who set up the US bank Citi in Australia.

The comments come amid recent debate both about the size of CEO pay packets, and the risk of burnout.

Investor anger over multimillion-dollar remuneration reached new heights during annual meeting season, with a raft of Australia's biggest companies, including Westpac, NAB, ANZ, AMP and Telstra, receiving big protest votes.


Big executive pay 'extraordinary': Turnbull   :(

Malcolm Turnbull says the pay packages of some CEOs is "extraordinary" including Domino's Pizza Enterprises chief executive Don Meij who made $36.8 million in a year.

Some of the most experienced directors in the country have acknowledged in recent times that all is not right with Australia's executive pay system, with Telstra chairman John Mullen famously declaring executive pay was “too high across the board".

At $4.36 million, the pay of the typical ASX100 CEO is about 52 times the average wage of $83,486, but the money comes with high expectations.   :o




National Australia Bank's former CEO, Andrew Thorburn, faced public criticism from some quarters over his plans to take four weeks' long-service leave following the release of the banking royal commission report in February. Mr Thorburn reversed the decision after he was singled out for criticism in the report, and resigned a few days later.

His chairman, Ken Henry, later defended the board's approval of Mr Thorburn's planned leave, saying he had served as CEO (including of NAB's New Zealand arm) for 10 years, and "I wanted Andrew to have the opportunity to continue to lead NAB for several more years".

The book says Dr Morgan was aware from his time running Westpac that CEOs "almost invariably carried some concerns that they could not share with their boards, their peers, or even their spouses".

Don't worry. They only have to weep for a few years to get their guaranteed 1st division lottery wins each year ;)