CEO salaries: Should they be capped? Most people think so.
Ten years on from the GFC, CEO salaries remain excessive, despite four out of five Australians saying CEOs are paid too much.
In fact, Australia Institute research shows that a majority of Australians support placing a strict limit on the maximum salary for CEOs or executive staff.
“Placing a strict limit on how much a company can pay a CEO or executive staff member has strong support amongst Australians,” says Ebony Bennett, Deputy Director of The Australia Institute.
“Another solution is for companies to pay company tax on very large payments to executive staff, by limiting tax deductibility as a business expenses.
“Interestingly, when we put these solutions to voters, support was high across household incomes and each gained at least 68 per cent support from voters for all parties.”
“Our research makes it clear, the reality of what CEOs are paid is not in line with community expectations, so it’s no surprise that four in five people say CEO’s and executives are paid too much.”
“When The Australia Institute asked what people considered a reasonable salary for a CEO, most people selected a salary of $720,000 a year or less.
“But the reality is that CEOs of ASX 100 companies were paid on average $5.2 million in 2017, and the highest paid CEO in Australia was on $21.6million.
“For comparison, 97 per cent of income earners are on $180,000 a year or less. The wage gap between your average worker and a CEO is absolutely excessive,” says Bennett.
The Australia Institute are not the only ones concerned about excessive CEO pays, Wayne Swan spoke to Annabel Crabb about the issue on Insiders:
To coincide with the 10 year anniversary of the Global Financial Crisis, The Australia Institute is running a program of events and initiatives to look at lessons learnt from the GFC, and lessons still to be learnt.
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