Companies

Oct 12, 2012

Is Australia Post’s Ahmed Fahour worth more than the PM?

Ahmed Fahour receives $2.78 million for running taxpayer-owned Australia Post -- the highest-paid government employee in the nation. Is he worth it?

Adam Schwab — Business director and commentator

Adam Schwab

Business director and commentator

It’s been a big month for Australia Post CEO Ahmed Fahour, aside from the scandal around the Methodist Ladies’ College board on which he sits. Fahour reported a solid profit result for the taxpayer-owned monolith, with earnings after tax rising from by $40 million to $281 million on the back of sales increasing by $140 million.

4 comments

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4 thoughts on “Is Australia Post’s Ahmed Fahour worth more than the PM?

  1. DAVID SANDERSON

    I never thought I’d defend CEO salaries but here I am. Comparison with the PM’s salary is pointless as everyone knows that salary is kept artificially low.

    Fahour appears to be a reasonably successful CEO and his salary does seem comparable to others in similar positions. Schwab has cherry-picked the salaries that suit his case but a broader comparison is unlikely to create the conclusion he is looking for.

  2. dunph

    The Ahmed Car does not have the share options and equity opportunities available to public company execs; he was on a nice wicket at Citi and the NAB – and just like his northern suburb compadres Jac Nasser and Eddie everywhere McGuire – Ahmed is lining up for his place at the trough … Nothing unusual to see here.

  3. Adam Schwab

    @David – The examples used were actually companies specifically referred to by Fahour.

    “The former NAB Australian boss explained that “we’re a commercial business, we compete against domestic competitors such as Toll for example, and we also compete against global competitors — UPS, FedEx, DHL, TNT — we have to pay compensation to attract the best people”

    No cherry picking there.

  4. Kevin Tyerman

    I am not convinced that raising the costs of small parcels by 30% to 40% for both domestic and international mail (disguised as an “average price increase” of 3.8% and 4%) actually keeps you “compet[itiv]e against global competitors” .

    Small businesses are already competing with a high dollar when trying to sell internationally, without the adverse effects of the cost of a 200 gram parcel to the UK rising from $12.50 to $17.20 on the 22nd October. A similar small parcel to the USA rises from $10.50 to $13.70 on the same day. Such a massive charge for small parcels discourages anyone overseas from buying products from Australia, while a similar parcel from the UK to Australia appears to cost £4.50. Earlier this year domestic parcels of the same size rose from $5.00 to $6.60 – a mere 32% increase by the simple act of removing weight categories and stating that domestic parcel post was increasing by an average of 3.8%.

    I am not sure that pricing your customers out of the International Marketplace is really a method of continuing growth, but I suppose that while mining is healthy nobody is too concerned about balance of trade any more.

    =-==-==–=-=-=-=-=
    Declaration of vested interest: I sell collectable items to the world market using Ebay, and shipping with Australia Post airmail from an inland regional centre.

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