Government businesses will have to reveal CEO salaries as Turnbull targets executive pay

Australia Post Managing Director and Group CEO Ahmed Fahour.

Government-owned businesses will have to reveal how much their chief executives earn as part of a crackdown by the Turnbull government on executive pay.

The government has written to several government-owned enterprises including Australia Post, the Future Fund and Australian Submarine Corporation demanding disclosure for 2015-16 by February 28.

The businesses will be expected to include these figures in their annual reports, in line with the requirements for publicly listed companies.

“We have written to all of the chairmen of the government-owned businesses and reminded them that Australians expect the remunerations of their executives and particularly their chief executives to be reasonable, to be in line with community standards,” prime minister Malcolm Turnbull said.

“Of course these are big jobs and important jobs and they are well paid as they are and they would be in the private sector.

“Many Australian households, families are doing it tough and in times like this it is important that government businesses and government enterprises lead by example. So boards should be setting salaries that reflect those community standards,” he said.

Earlier this month it was revealed that half of Australia Post’s $36 million profit last year went to just six executives, including managing director and group CEO Ahmed Fahour, who banked $5.6 million.

Turnbull, who takes home less than 10% of Fahour’s pay packet, thinks the boss of the government-owned business is overpaid.

“I think that salary, that remuneration is too high,” Turnbull said after the details of Fahour remuneration package – a $4.4 million salary and $1.2 million bonus last financial year – emerged, against the wishes of the company, which wanted to keep them private, worried about “brand damage”.

The PM said he’d raised the issue with Australia Post’s chairman, John Stanhope.

Australia Post said the matter would be discussed at the next meeting of the board’s nomination and remuneration committee at the end of February.

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