Fat cat executives – some earning more than 100 times the average wage – should be sharing their wealth with their workers, says a top Kiwi commentator. Corporate liaison for the New Zealand Shareholders Association and businessman Des Hunt said good bosses spread the benefits of an organisation rather than lining their own pockets.
“What they are being paid should have some relevance to what others in the organisation are being paid,” he said. “If the average wage at a medium-to-large company is $40,000, I would have difficulty if the CEO’s base salary was much more than 30 to 40 times that. Anyone who thinks otherwise is being greedy.”
A survey last year of 504 chief executives by human resources consultancy Sheffield found salary packages ranged from $183,327 to $365,000. Their average base salary rose by 5.9 per cent on the previous year.
A Business Herald investigation into 56 of New Zealand’s biggest companies showed their bosses were even better off, with pay rises averaging 8 per cent and the average wage more than $1 million.