Macquarie's pay cuts: sensible or shocking?

5 May 2009

1 minute read

Macquarie's pay cuts: sensible or shocking?

Macquarie's bosses were always going to get a pay cut, but did you expect it to be quite this big?

Macquarie Group chief executive Nicholas Moore's remuneration has dropped by a whopping $26m million to just $290,756.

Senior executive pay has decreased dramatically too, in line with the bank's flagging share price and 52% fall in net profit. The firm's total wage bill for its executive team decreased from $124.7m to $11.36m.

Will these cuts make it harder for the so called "millionaire's factory" to recruit and retain senior talent? Or is Macquarie simply implementing a sensible reward strategy in tough times?

Is it actually ahead of its foreign investment banking rivals in curtaining compensation to meet market conditions? Let us know below.

AUTHORAnonymous

Insider Comment

Or
Oracle
9 May 2009
No point in complaining. The senior guys at Macquarie know that there are thousands of young people lining up to work at Macquarie. So staff who aren't happy with their bonuses this year can leave if they feel ripped off as they will be easily replaced. Macquarie will still emerge the winner and the leavers would be cutting off their noses to spite their face. That unfortunately is the reality of the current economic environent.
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Al
Also disgruntled
8 May 2009
Agree with Amazed - There has been talk of a 25% bonus reduction for top executives in some divisions compared to a 90% reduction for the junior guys who have not been made redundant. For a company which places so much emphasis on young employees as their most valuable resource, they show a surprising disregard when their own remuneration is threatened.
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Re
Really Amazed
8 May 2009
amazed.. that's right its more like less than 10k...
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Am
Amazed
8 May 2009
I've heard that junior Macquarie analysts (who would typically work 80-100 hours per week) got bonuses of less than 10-15k.
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Ge
Get Real Mac Bank
7 May 2009
Agree with disgruntled and Gipped. Mac Bank is a joke and continues to try and hide the true position of not only its senior exec remuneration levels but its whole business. Why would the Aust Govt support this opaque farce? When will the market wake up to this?
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