Soaring CEO pay narrows gap with Oz

Tony Gibbs

Guinness Peat Group's New Zealand executive director Tony Gibbs last year got a more than $3 million pay rise, making him New Zealand's highest paid public company director.

The annual report from Sir Ron Brierley's investment company shows Gibbs got £1,914,782 ($5.5 million), up from £815,433 in 2004. The figure includes £157,212 in holiday entitlements, not yet paid. He enjoyed gains on options equal to £1.04 million.

Gibbs' package is well ahead of the next most-highly paid, Westpac New Zealand boss Ann Sherry, who last year pocketed $3.11 million.

A Business Herald survey of executive pay earlier this month showed that the chief executives of the 44 largest companies that disclosed their pay enjoyed an average pay increase of 23 per cent last year.

The earnings boost, which follows a similar increase in 2004, is closing the gap with counterparts in Australia. Others say it is symptomatic of a management culture that rewards itself but not the workers.

Statistics New Zealand figures show that average earnings including overtime increased by only 3.1 per cent last year, to $794.83 a week.

GPG, however, is one of the country's best wealth creators. An investor who bought $1000 of GPG shares shortly after Sir Ron took over 16 years ago, now has $16,718 of assets.


Pocketing it

1. GPG executive director Tony Gibbs, $5.5 million.
2. Westpac's New Zealand chief executive Ann Sherry, $3.11 million.
3. Telecom boss Theresa Gattung, $2.9 million.
4. Fonterra chief executive Andrew Ferrier, $2.6 million.