Tuesday, August 20, 2013

Say what?

Two articles sitting next to each other in the Sydney Morning Herald this morning had me shaking my head.

Then first is about BlueScope Steel. The CEO was reported a bad year - naturally it was all down to everything other than management.

His company achieved a year-to-June net loss of $84.1 million and a revenue decreased $1.1 billion compared to the previous year. After his report the shares crashed 16%.

The adjoining article was about executive salaries. BlueScope's CEO, yes, the very same man, was rewarded with an almost doubling of his salary package, up from $2.8 million to $5.1 million.

1 comment:

Duffy said...

Meh. Sometimes these are contractual obligations that the company is obliged to keep. Sometimes they predict their losses are going be much larger and if he reduces that expected loss, he gets a bonus. I worked in executive compensation in the US for big banks for a few years and this is not uncommon. It's also usually not as cut and dry as it may appear. YMMV