You can cite as many examples of CEO remuneration which might be...

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madamswer

16,402 Posts.

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22/01/24

20:21

Post #: 72009082
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Originally posted by blueballs ↑

A small private business is different in many ways to a publicly listed company, ceo wages are often related to the companies market cap and being public as you said we as shareholders do have say in a small part on remuneration but small shareholders generally make up only a small % of the register especially in top 100.

If a small company wants to pay its ceo or a private company ceo more money I don’t mind but generally when a company let’s say Medibank private goes from a private company to a public company somehow the ceos wage is multiplied and I don’t think it’s justified.

forexample

How do you get a $4 million pay rise? Ask George Savvides.

The 58-year old trained engineer will move from being one of Australia's highest paid public servants to a chief executive when Medibank floats this year, and his pay packet is expected to soar around 400 per cent.

Or
The track record for privatisations are that they are generally a bonanza for management," he said.

"In the most recent privatisation we have seen, which was Aurizon, the total cost of the board of managers in public ownership was $5.2 million," he said.

"The total cost for the 2012 financial year, the first full year since privatisation, was $19 million," Mr Lawrence said.

or After rail company QR National privatised in 2010, chief executive Lance Hockridge's salary soared from $1.1 million to almost $4.1 million within a year. His salary package is now worth $5.1 million.

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You can cite as many examples of CEO remuneration which might be deemed to be as excessive as you like, but you keep going in circles and inevitably arrive back at the position that its a matter purely for the owners of the business in that the remuneration of their CEOs comes out of the private pockets of those owners of the business, not out of the public purse.

So really, unless you and I are shareholders in a company its really none of our business what the CEO's of that company earn.
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