Macquarie slashes executive bonuses
QBE CEO Frank O’Halloran’s changed retirement arrangements aren’t the only ones coming under scrutiny as governments and shareholders get toey. Macquarie Group has cut its bonus payments in a bid to avoid local criticism and regulatory impacts.
If approved by shareholders, the profit share paid out to executives in cash from March 31 will be reduced and the percentage of retained profit share increased.
The CEO’s cash component of profit share will fall from 70% to 45%, members of the executive committee from 60% to 50%, and other executive directors from 80% to 50%.
Macquarie says the changes are “consistent with global remuneration and regulatory trends” but also with the company’s approach linking staff profit share to profitability.
The Federal Government announced recently it will legislate to curb excessive termination benefits being paid to executives. The original target was CEOs who lost the company money and then received a massive payout – hardly a situation Mr O’Halloran is ever likely to experience.
If approved by shareholders, the profit share paid out to executives in cash from March 31 will be reduced and the percentage of retained profit share increased.
The CEO’s cash component of profit share will fall from 70% to 45%, members of the executive committee from 60% to 50%, and other executive directors from 80% to 50%.
Macquarie says the changes are “consistent with global remuneration and regulatory trends” but also with the company’s approach linking staff profit share to profitability.
The Federal Government announced recently it will legislate to curb excessive termination benefits being paid to executives. The original target was CEOs who lost the company money and then received a massive payout – hardly a situation Mr O’Halloran is ever likely to experience.