Opposition financial services spokesman Stephen Conroy has attacked the level of salaries received by the chief executives of public companies, who he says have not acted in the interests of their shareholders. Can that be said about the CEOs of the insurance companies?

Senator Conroy is, of course, not in a position to do much more than make noise about the issue, and he would be unlikely to do anything about it even if he was in a position of power, anyway.

His comments come after new remuneration disclosure rules – part of the Federal Government’s CLERP 9 (Corporate Law Economic Reform Program) – forced public companies to divulge the salaries of executives and directors.

The CEOs of the major Australian insurers have done very nicely, but their earnings are pretty much in line with their peers in other industries.

Look at the record of the biggest insurer (in total premium income terms), QBE. According to the group’s 2003 annual report, CEO Frank O’Halloran doubled his total package to $2.4 million after an 11% increase in base salary to $857,000, a bonus of $836,000 and a new long-term incentive package valued at $386,000.

That’s no big deal, considering the much-admired Mr O’Halloran is acknowledged as one of Australia’s best CEOs.

Mr O’Halloran, 58, has been running QBE for seven years and has recently started laying the groundwork for his future retirement. His retirement benefits will include a lump sum payment of 150% of his annual salary.

Next up is IAG CEO Michael Hawker, who received a $576,000 pay increase to $3.375 million in the year to June 30.

Also presiding over a company with a record profit is Suncorp Metway MD John Mulcahy, who was paid $3.29 million for his first full year at the Queensland allfinanz group.

Promina MD Mike Wilkins made about $1.6 million after steering his new group through an IPO and successful launch on the Australian market.

Too much? Compare them with Wesfarmers CEO Michael Chaney ($6.7 million) or Commonwealth Bank CEO David Murray ($4.42 million) or ousted National Bank CEO Frank Cicutto ($9 million). Macquarie Bank’s Allan Moss got $9.08 million and Leighton CEO Wal King, $8.2 million.

Lots of money, but in terms of major companies, not out of step with the mainstream. And as they say, if you pay peanuts…