General

Working Australians demand tough action on executive salaries and bonuses

Today's report by the Productivity Commission from its inquiry into executive remuneration must send a strong message to corporate Australia that excessive salaries that encourage risk-taking will no longer be tolerated, say unions.

ACTU President Sharan Burrow said working Australians will be expecting the Productivity Commission to recommend tough action to cap outrageous executive salaries and bonuses.

"We cannot continue with business as usual with the greed-fuelled, risky behaviour that led to the Global Financial Crisis," Ms Burrow said.

"In the past few weeks, we have seen the CEOs and directors of many of Australia's largest companies pocket increased salaries and bonuses as if the GFC never happened.

"At the same time, they have been exhorting their employees to tighten their belts and make sacrifices to keep their companies profitable.

"The hundreds of thousands of working Australians who have lost their jobs or had their hours cut to help businesses remain viable over the past year want to see action over executive pay.

"Excessive salaries, bonuses and golden handshakes contributed to the GFC by encouraging risk-taking and short-term thinking that undermined the sustainability of businesses and the financial system.

"Decisive action must be taken to rein in these salaries and prevent a repeat of the GFC.

"This action should include adoption of a proposal from Australian unions to cap the salaries of company chiefs at a maximum of 10 times average earnings in that company," Ms Burrow said.