Stand by for another major public debate about executive pay as
Macquarie Bank has smashed all the records with its latest salary
deals for the year to 31 March, 2006.
Net profit was up 13% to a record $916 million but the salary packages
have risen at a faster rate. Managing director Allan Moss lifted his
overall package from last year’s staggering $18.5 million to $21.2
million and investment banking boss Nicholas Moore wasn’t far behind as
he rose from $18.2 million $20.6 million.
Macquarie’s co-head of corporate finance and veteran infrastructure
deal maker, Michael Carapiet, has leapt up the league ladder into third
spot with $15.88 million, but he must have been on sabbatical the previous year when he
only collected $1 million.
Property boss Bill Moss went fractionally backwards to an even $15
million, while Andrew Downe, the treasury boss who magnanimously
announced that gift to the Beaconsfield workers, had a bumper year
rising from $10.3 million to $14.26 million.
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Chairman and co-founder David Clarke, who commits half his time to
Macquarie, finally cracked eight figures, lifting his pay packet from $9.7
million to $11.4 million and should feature along with several other Macquarie bankers in the 2006 BRW Rich List later this week.
Macquarie is now second highest in the investment banking world in
terms of the percentage of net income which goes to employees. At 52%,
this comprised a total employee cost of $2.3 billion, which averaged
$280,000 across the bank’s 8,200 staff worldwide.
The top seven executives lifted their overall pay packets from $89.15
million to $110.76 million, meaning the average leapt from $12.73
million to a staggering $15.82 million. There is no other ongoing
executive on that much, save for the odd farewell payout such as David
Murray’s $27 million at CBA, yet the Millionaires Factory can average
huge figure across its top seven. Amazing!
Here is a table listing Australia’s 20 highest paid bankers and there
aren’t many executives from other industries that would make the list:
David Murray: departed CBA CEO, $27m
Allan Moss: CEO Macquarie Bank, $21.2m
Nicholas Moore: Macquarie investment banking boss, $20.6m
Michael Carapiet: Macquarie infrastructure chief, $15.88m
Bill Moss: Macquarie property boss, $15m
Andrew Downe: Macquarie treasury boss, $14.26m
Ottmar Weiss:Macquarie commodities boss, $12.4m
Phillip Green: CEO Babcock & Brown: $12.18m
David Clarke: Macquarie chairman, $11.4m
Michael Maxwell: Babcock property chief, $10.06m
Peter Hofbauer: Babcock infrastructure boss, $9.44m
David Morgan: Westpac CEO, $9.1m
John McFarlane: ANZ CEO, $7.2m
Martin Rey: Babcock Europe boss, $7.03m
Richard Sheppard: Macquarie deputy MD, $6.2m
John Stewart: CEO NAB, $5.9m
Ahmed Fahour: CEO NAB Australia, $5.9m
Steven Zissus: Babcock US boss: $5.73m
David Ross: Babcock COO, $5.64m