17 June 2015

Minister must act on energy CEOs salaries

Energy Minister Simon Bridges must send a message to the Boards of the nation’s power companies that astronomical CEO salaries are not appropriate, Labour’s Energy spokesperson Stuart Nash says.

“The CEOs are earning from $ 2.1 million to $1.3 million when most New Zealanders are still waiting for a wage increase.

“Under questioning at today’s Energy Select Committee it was revealed the power company CEOs reporting to Simon Bridges earned between five and eight times the salary the Minister himself earns.

“Mr Bridges refused to say whether he thought the CEO’s salaries were excessive or not.

“I think the shareholding Minister needs to send a signal to the boards of these government controlled companies that excessive salaries for CEOs is inappropriate. The Prime Minister has legislated for Members of Parliament salaries to be tied to the rate of inflation, and I think that the remuneration committees of these state-controlled companies should take heed of the PM’s lead and apply the same test when reviewing senior executive salary packages.

“I expect the reason why he wouldn’t answer today’s question is because such salary levels are incredibly difficult to defend when everyone from wage earners to dairy farmers are doing it hard,” says Stuart Nash.

Salaries:(Source Parliamentary Library)

Mighty River Power 2014
CEO total remuneration package 2014 FY- $2,184,828 / $1,300,894 in FY2013

Genesis Energy
CEO total remuneration package 2014 FY $1,306,199 (included a bonus of $334,408 paid in August 2013)

Meridian
CEO total remuneration package 2014 FY $1,859,016 (includes a bonus of $687,500 from FY2013

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