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3w ago

Australia’s CEO Termination Payouts Drop to 15-Year Low

Reforms granting shareholders a vote on CEO exit packages have cut payouts to $8.4 million in 2024.

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Hands take Australian money notes out of a wallet.

Overview

  • Termination payouts for CEOs of ASX-listed companies dropped to $8.4 million in the 2024 financial year, marking the lowest total in 15 years after falling from $33.5 million in 2023.
  • 2009 changes to the Corporations Law introduced shareholder votes on large exit payments, prompting boards to pare back golden parachutes over the past decade.
  • The median realized pay for ASX100 CEOs reached $4.15 million in 2024 compared with $3.96 million in 2014, and their fixed salaries have remained around $1.76 million.
  • CEO compensation in ASX100 firms stood at 55 times the average worker’s earnings in 2024, a significantly narrower gap than in the United States and United Kingdom.
  • The Australian Council of Superannuation Investors warns that CEO bonuses remain loosely tied to performance, and these incentives will face closer scrutiny in the upcoming reporting season.