Inquiry Into Executive Pay

By Peter Lewis

The ACTU Executive today called for a public debate on spiralling executive pay packets, seeking feedback from workers, community representatives and unions.

ACTU President Sharan Burrow said the multi-million dollar salary packages for senior executives were beyond the comprehension of ordinary workers.

�While workers are told they need to be more productive, they see exorbitant packages going to their bosses � often irrespective of the performance of the company,� Ms Burrow said.

Ms Burrow said the average annual packages of Australian chief executives had soared by 73% over the past two years, at a time when many companies were experiencing falling share prices and reduced profit margins.

�Share option packages encourage executives to inflate the value of shares in the short-term, rather than concentrating on a company�s ongoing viability.

�We�re interested in hearing from working people about what they think the right balance should be between executive salaries, dividends and their own wages.�

The executive salaries inquiry will seek submissions on issues including:

� the impact of executive share option packages on job security;

� the distribution of profits between workers, shareholders and executives;

� whether Australia�s workers are getting value for money from their executives; and

� whether there is adequate scrutiny of executive pay in both the public and private sectors.

Email submissions to: mailto:peterlew@labor.org.au

For further information

Contact:   Peter Lewis
Phone:   029 264 1691

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