CSL Limited (ASX: CSL) has decided not to give any raise to CEO Paul Perreault in his base pay this year. The remuneration committee has decided to stay put on Perreault’s fixed pay or short-term reward target for the second consecutive year. As decided by CSL, Perreault’s take-home pay amounted to $US US7,394,489 for 2018, down by around 0.2% from the previous year. Statutory pay totaled to $US11,266,445, out of which 84% was performance-based, higher than $US8,180,831 last year. Board of Directors, on the other hand, decided to take a raise in their remuneration to be in line with the ASX Top 12 companies.
CSL posted a profit after tax of $US 1.729 Bn for the full year 2018 and revenue of $US7.6 Bn, an increase of 14.7% pcp. The decision by CSL comes in contrast with the CEOs of other ASX listed companies who have to kept getting rewarded and earn bonus just for meeting the targets, forget any exceptional performance. Shareholders, on the other hand, are not impressed with the companies overpaying the top management. CSL’ Chair of the Human Resources and Remuneration Committee Megan Clark stated that the decision of not raising CEO’s pay was taken post shareholder feedback and global market positioning.
Clark stated that the committee has decided to increase Perreault’s LTI target by 13% which is both time and performance hurdled. The decision has been taken to strike a fine balance between the incentives and interests of the shareholders. Base pay remains fixed at $US1,751,000 and his short-term incentive target is set at 120% with the maximum payout at 180% along with the long-term incentive target of 310%.
CSL’s share traded at $210.62 with the market capitalization of circa $93.41 Bn as on September 14, 2018.
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