03/12/2008 - 22:00

Goyder leads way with base salary boost

03/12/2008 - 22:00


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THE chief executives of many of Western Australia's largest companies enjoyed substantial increases in guaranteed base income during the past financial year.

THE chief executives of many of Western Australia's largest companies enjoyed substantial increases in guaranteed base income during the past financial year.

WA Business News' annual survey found 10 Perth-based executives breaking the $1 million for their annual base salary, inclusive of superannuation payments.

Moreover, the list makes only a passing resemblance to the list by total earnings, meaning the basic package isn't instrumental when it comes to reaping rewards.

Top of the list is Richard Goyder, managing director of diversified industrial company Wesfarmers, whose base earnings of $3.3 million stand at almost $1 million higher than those earned by oil and gas producer Woodside chief executive Don Voelte, ranked number two.

Mr Goyder's base income for the year comes in at 25 per cent more than for last year, when it stood at $2.4 million.

His salary is set to increase further in the upcoming revised remuneration package following the company's acquisition of Coles, whereby Mr Goyder will be able to earn up to 100 per cent of his fixed remuneration as an annual incentive.

At $2.3 million, Mr Voelte has a base salary that equals less than half his total earnings for the year, which included a $1.6 million short-term bonus.

The base income makes up 38 per cent of his total executive remuneration, with 37 per cent of total remuneration completed by the short-term incentive and 25 per cent in options.

His salary has risen by almost $400,000 following a good year for the firm.

Specialist mining contractor NRW Holdings chief executive Jeffery McGlinn's base income has risen by almost $500,000 and has moved up the rankings this year.

Almost equal is Minara Resources Peter Johnston's $1.7 million base earnings, which have also risen from the previous year.

A smaller increase in base pay than for most was in store for Rio Tinto Iron Ore's chief executive Sam Walsh, whose basic salary plus superannuation increased by $200,000.

Uranium projects operator Paladin Resources managing director John Borshoff saw his basic pay package rise by 60 per cent on the previous year.

The company has reported an optimistic outlook for next year as global demand for uranium rises in light of the growing use of nuclear power. This brings his base income to $1.7 million for the year.

Mineral sands producer Iluka Resources chief executive David Robb saw his base income soar to $1.1 million, after serving a full year in the role.

Reaping the resources boom in the top 25 are also gold, copper and bulk commodities developer Straits Resources, zinc, copper, nickel and gold producer Kagara, and iron ore producer Mount Gibson Iron.

Other resources sector executives to have sheltered from global economic storm clouds include engineering, construction and asset support contractor Clough, property groups Macmahon Holdings and Aspen Group and companies in construction and investment and servicing resources industries.

Global education services provider Navitas managing director and the recently announced Ernst and Young entrepreneur of the year, Rod Jones, had a $654,715 increase in his pay.

Navitas is one of the few companies make it to the top quarter in chief executive basic payouts that are not in the traditional 'boom sector' industries of the state.

West Australian Newspapers Holdings Ken Steiner joins Mr Jones in the list, with his basic salary now at $900,000, up from $817,000 the year before.


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