How much do CEOs of Australian channel firms and tech companies earn?

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How much do CEOs of Australian channel firms and tech companies earn?

How much does the average CEO of a tech company or channel partner get paid? How much should they get paid? 

CRN broke down the fixed remuneration and total payments for CEOs of 25 ASX-listed channel partners and tech companies during the 2021 financial year. Governance Institute of Australia’s Megan Motto also explained the difficulty of getting the balance right when it comes to holding onto CEOs without frustrating stakeholders.

The figures were taken from the companies' most recent annual reports, which had information of CEOs that have since departed the company. 

The average pay of a channel partner’s CEO remains well below the average CEO pay of the top 200 publicly listed companies, which reached a record high in the last financial year; the average CEO’s realised pay hit $9.14 million according to the Australian Council of Superannuation Investors' report on the ASX 200. 

The average ASX 200 CEO pay is around 132 times what the average worker makes, with weekly wages currently at $1328.

Three tech and channel-aligned companies were mentioned in the ASCI’s report. Megaport’s CEO Vincent English ranked 14th at $10,676,056 realised pay. Megaport did not reply to requests for comment on how its remuneration committee determines fixed salaries, bonuses and incentivisation schemes or how effective they’ve been at increasing results. 

Kogan’s CEO Ruslan Kogan had the highest reported pay for the 2021 financial year at $8,992,714. His realised pay was $497,707 for the period. 

TPG’s CEO Inaki Berroeta’s had a reported pay of $4,537,879 for the 2021 financial year and realised pay of $3,389,391. TPG declined to comment.

1. Megaport’s Vincent English 

Fixed salary: $561,817

Issued 1,000,000 options during the year ended 30 June 2021, at a closing value of $3,617,204

2. Telstra’s Andrew Penn

Fixed salary: $2,390,000

Total remuneration: $5,305,000

Penn is set to depart Telstra in September, with head of finance Vicki Brady named as replacement.

3. TPG’s Inaki Berroeta

Fixed salary: $1,850,000 

Total remuneration: $5,550,000 

4. JBHiFi’s Richard Murray

Fixed salary: $1,475,00 

Total remuneration: $4,259,032

5. NextDC’s Craig Scroggie 

Fixed salary:: $1,298,306 

Total remuneration: $3,146,357

6. Uniti Group’s Michael Simmons

Fixed pay: $456,662 

Total remuneration: $1,103,959 

7. Data#3's Laurence Baynham 

Fixed salary: $531,000 

Total remuneration: $1,034,301 

8 SYMBIO Holdings’ founder Rene Sugo

*Rene Sugo is a founder 

Fixed salary: $575,000

Total remuneration: $956,772

9. Aussie Broadband founder Phillip Britt

Fixed salary: $389,381

Total remuneration: $954,037

10. Macquarie Telecom Group founder David Tudehope

Fixed salary: $676,150 

Total remuneration: $953953

11. Vonex’s Mathew Fahey

Fixed salary: $286,000

Total remuneration: $683,417

12 Superloop’s Paul Tyler

Fixed salary: $750,000 

Total remuneration: $762,062

13 Firstwave Cloud Technologies’ Neil Pollock

Fixed salary: $356,061 

Total remuneration: $615,766 

14. Webcentral’s Joe Demase

Fixed salary: -

Total remuneration: $537,721 

15. Field Solutions Holdings’ Andrew Roberts

*Andrew Roberts is a founder 

Fixed salary: $295,000

Total remuneration: $478,366

16. Tesserent’s Kurt Hansen

Fixed salary: $335,616

Total remuneration: $476,190 

17. Nexion founder Paul Glass

Fixed salary: $ 249,840

Total remuneration: $458,698

18. Cipherpoint’s Edward Pretty

Fixed salary: $123,000

Total remuneration: $399,075

19. Spirit Technology SolutionsSol Lukatsky

Fixed salary: $381,538 

Total remuneration: $947,550

Lukatsky stepped down as CEO in early July, with Julian Challingsworth named as his replacement.

20. Cirrus Networks Holdings’ Matthew Sullivan

Fixed salary: $306,924

Total remuneration: $322,017

Sullivan resigned as CEO in October 2021, with chief operating officer Chris McLaughlin named as his replacement. 

21. MoQ’s Joe D’Addio

Fixed salary: $180,000

Total remuneration: $197,100  

23. Hubify’s Victor Tsaccounis

Fixed salary: $200,000 

Total remuneration: $277,613 

24. Atturra’s Stephen Kowal

Fixed salary: $375,00

750,000 Performance Right as part of long-term incentive scheme 

25. Dicker Data’s David Dicker 

*David Dicker is a founder

Appears to have no fixed salary but has interests in 58,000,000 shares in the company:

10,000,000 Ordinary shares in Dicker Data Limited

48,000,000 Ordinary shares held by Rodin Ventures Limited

10,000 Ordinary shares held by his wife 

Getting the balance right?

Governance Institute of Australia’s CEO Megan Motto told CRN of the two predominant factors determining CEO pay: one pulling them up and another pushing them down. 

Companies’ remuneration committees need to pay their bosses enough to keep them at the company, without creating a perception among stakeholders that CEOs are getting more than their fair share. 

“Overall, the executive pay market seems to be in a state of catch up and as the war for talent continues, including at CEO level, there may be some further pressure on salaries - getting the right person for these top jobs is critical and remuneration is often a key factor for candidates.” 

“When setting executive pay, organisations, including those in the technology sector, need to carefully navigate shareholder and stakeholder expectations with any large salary increases that may potentially be perceived as unjustified by internal and external stakeholders

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