Australia’s highest-paid CEOs feel wrath of coronavirus
Two of the Australia’s highest-paid chief executives are earning their money this year as their respective firms see 40% hits to their share price from coronavirus.
Qantas, which has seen shares fall by 40.1% since the start of the year, is led by group chief executive Alan Joyce who earnt $23.88 million during 2018, making him the highest-paid CEO in Australia on a realised basis.
In light of the fallout, Joyce announced this week that he would waive the rest of his salary for the remainder of the 2020 financial year.
Meanwhile, Treasury Wine Estates (TWE), which fell 41.8% since the start of 2020, was managed by Michael Clarke who was paid $19.2 million. Clarke was due to step down from the firm in July, 2020 and would be replaced by Tim Ford.
The pair were the first and third-highest paid CEOs in Australia respectively. In second place was Nicholas Moore, chief executive of Macquarie Group who earnt $23.86 million.
According to a survey in 2019 by the Australian Council of Superannuation Investors, there were 10 chief executives who earnt more than $10 million per year.
Treasury Wines had been impacted by sales of wine into China and the inability of staff in China to work.
In an update to investors ahead of its full-year results, TWE said: “As a result of the continuation of infection containment controls from the central government and provincial authorities throughout China, TWE’s staff have not yet returned to the office and continue to work from home. The same situation is being experienced by TWE’s partnership network, including wholesales, retailers and logistic providers.
“Post Chinese New Year consumption across discretionary categories has been significantly adversely impacted.”
Meanwhile, Qantas reduced capacity by almost a quarter for the next six months in light of the spread of coronavirus into North America and Europe.
It also triggered cost measure actions such as cancelling annual management bonuses for the full year 2020 and a 30% fee reduction for the Qantas board for the remainder of the full year 2020.
Other companies which have been badly-hit by coronavirus include Crown Resorts, Flight Centre, Sydney Airport and Blackmores.
AUTHOR
Laura Dew
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