Ahmed Fahour, the Australia Post CEO who quit after his pay was criticised as excessive by prime minister Malcolm Turnbull, is departing with a payout of $10.8 million, boosted by bonuses.
According to Australia Post’s annual report, Fahour was paid $6.79 million in 2017, including superannuation and a short term incentive of $2.17 million.
On top of that his long term incentives have vested, bringing him another $4 million, representing 66.67% of the maximum potential of that bonus.
Australia Post chairman John Stanhope wrote in the annual report: “These payments reflect the sustained success of the transformation that Mr Fahour has led at Australia Post over many years and are consistent with his contractual obligations.”
Fahour resigned in February two weeks after Turnbull criticised Fahour’s $5.6 million pay packet.
At that time, Fahour’s pay was said to the biggest salary ever paid to an Australian public servant. He got a $4.4 million salary and $1.2 million bonus last financial year.
In 2017, Australia Post’s revenue was 3.7% higher at $6.8 billion and profit before tax was $126.1 million, up from $41 million last. The parcels business was strong but letters still face significant challenges with volumes down 11.8%.
Fahour’s replacement Christine Holgate, the former CEO of Blackmores, gets a base pay of $1.375 million. She can boost that to $2.75 million if she gets her full short term bonus.
She doesn’t get a long term incentive plan this year. That will probably start next year.