Page 1116 - Week 04 - Wednesday, 20 March 2013
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benchmarking against other similar organisations and also, I understand, in recent times, in terms of having commissioned a consultant to undertake some further work in relation to benchmarking that position.
MADAM ACTING SPEAKER: A supplementary, Mr Hanson.
MR HANSON: Treasurer, what is the government’s policy in relation to the remuneration paid to executives in government-owned monopolies and how does your government justify an $850,000 package?
Ms Gallagher interjecting—
Mr Hanson interjecting—
MADAM ACTING SPEAKER: Mr Hanson and Ms Gallagher, let the Treasurer answer the question.
Members interjecting—
MADAM ACTING SPEAKER: Let the Treasurer answer the question, members.
MR BARR: The board sets the salary of the managing director. There is a process that they undertake and they go through that process. Obviously they have to bear in mind market conditions in relation to similar public utilities, although it is fair to observe that ACTEW, given the complexity of its arrangements in a joint venture, the spread of its activities across water and electricity and sewerage, is more complex than some other straight public utilities that might simply provide water or might provide electricity separately.
On the question of Mr Sullivan’s salary, when benchmarked in 2010-11, what was published and advised to the shareholders at that time was at the upper end but within the range of similar positions in similar organisations around the country. The more recent position and advice to government in relation to the managing director’s salary is, I believe, above those benchmarks from 2010-11, and so is the subject of some concern from the shareholders.
MADAM ACTING SPEAKER: Supplementary, Mr Smyth.
MR SMYTH: Treasurer, does the managing director’s remuneration package include any element of a performance bonus? If yes, how much bonus was paid in 2010-11, who approved it and what performance indicator outcomes supported the assessment of the bonus amount?
MR BARR: Yes, I understand that the total package for the managing director includes a salary component, a bonus component and a superannuation component. The determination around performance bonuses sits with the board. The exact figures for the 2010-11 financial year are subject to some further clarification, as what was published in the annual report and then what was corrected yesterday shows there is a discrepancy between the two, and I am seeking further information in relation to
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