Salaries paid to executives of listed companies have increased by 34 per cent in over a year, according to research from accounting body, CPA Australia.
The research found that salaries paid to executives of the 54 companies in the S&P/ASX 200 increased from $147 million in 2006 to $223 million in 2007.
Stock options are also on the rise. The total value of stock options awarded rose from more than $296 million in 2006 to over $364 million in 2007, according to the CPA report.
The 41-member industry fund body, the Australian Council of Superannuation Investors (ACSI) called for wider debate on executive remuneration.
"Over the last few years we have seen an increase in the base salary and a greater shift towards short-term incentives. It is hard to see how companies can claim a long-term focus when their executives are getting paid these short-term rewards," ACSI chief executive Phil Spathis said.
"In the current environment it will be interesting to see whether executive shares will be linked to the downside as they have to the upside."
