Air Services escalating salaries and bonuses........
Thread Starter
Air Services escalating salaries and bonuses........
The Australian 15 June 2015:
"The salary pool of fewer than a dozen top executives at Airservices Australia rose by more than 40 per cent last financial year to nearly $4 million."
An average salary of $333,333 per annum (or $1,282 per day) - plus bonuses!
Who sets these salaries, the Board? Are they comparable to other Government authorities and the private sector?
Angus Houston pushed to clarify $4m salary blowout
Ean Higgins Reporter
Sydney
The salary pool of fewer than a dozen top executives at Airservices Australia rose by more than 40 per cent last financial year to nearly $4 million, applying pressure on the organisation’s chairman, Angus Houston, to explain the blowout.
The Australian can also reveal that the remuneration package of Airservices chief executive Margaret Staib, who came under pressure in Senate estimates hearings last year over her lack of detail concerning a $20,000 alleged creditcard fraud by one of her staff, is $600,000.
Sir Angus and Ms Staib have been the targets of a renewed campaign by businessman and aviator Dick Smith over the failure of Airservices to extend its air traffic control and radio officer service when it has the capacity to do so. Mr Smith claims that Airservices, which is government owned but financed by charges on the aviation industry, lacks the financial rigour of the private sector because, with careers purely in the air force as senior officers, neither Sir Angus nor Ms Staib have real-world business experience.
Bonuses for Airservices senior executives soared by nearly 60 per cent last financial year.
Mr Smith claims the bonus system encourages Airservices executives to maximise industry charges and minimise expenditure on safety measures, to improve the bottom line and boost their take-home pay, claims denied by the organisation, which insists safety is primary.
“How can you have bonuses in a monopoly?” Mr Smith said.
The Australian is not suggesting that Sir Angus or Ms Staib have acted inappropriately.
Airservices financial records show that in 2012-13 the organisation paid $2.2m in salaries to its senior executives and $495,000 in bonuses. In 2013-14, the executive remuneration pool skyrocketed to $3.1m in salaries, with $778,000 in performance bonuses.
The Australian put questions on the figures to Airservices which were handled by spokesman Graham Robinson, but the responses, according to corporate accountant John Leece from chartered accountants Boroughs Australia, did not add up.
In a statement to The Australian, Airservices said while there were 10 executives in the 2012-13 figures, including two who worked less than six months in that year, the 2013-14 figures covered 11 executives, only one of whom worked less than six months.
“Executive remuneration increase from 2012-13 to 2013-14 was an average of 2.25 per cent,” Airservices said. “Airservices implemented an executive pay freeze for the current year.”
But even taking into account the particular factors Airservices listed, the average total remuneration package rose by over 20 per cent, and Mr Leece said it was impossible to reconcile that with the 2.25 per cent claimed.
“It was a nonsense,” Mr Leece said. “I took out 1.5 people — I was trying to give them the benefit of the doubt. “On a per-head basis it is a major increase, and to say it’s not is just not right at all. You can look at the bonus increase alone, which is considerable, for only a few people.”
Mr Leece noted that Airservices refused to answer several questions from The Australian which could have sorted out the inconsistencies, such as how much the additional employee got paid, and the highest individual salary percentage increase.
Sir Angus was unavailable for comment.
Ean Higgins Reporter
Sydney
The salary pool of fewer than a dozen top executives at Airservices Australia rose by more than 40 per cent last financial year to nearly $4 million, applying pressure on the organisation’s chairman, Angus Houston, to explain the blowout.
The Australian can also reveal that the remuneration package of Airservices chief executive Margaret Staib, who came under pressure in Senate estimates hearings last year over her lack of detail concerning a $20,000 alleged creditcard fraud by one of her staff, is $600,000.
Sir Angus and Ms Staib have been the targets of a renewed campaign by businessman and aviator Dick Smith over the failure of Airservices to extend its air traffic control and radio officer service when it has the capacity to do so. Mr Smith claims that Airservices, which is government owned but financed by charges on the aviation industry, lacks the financial rigour of the private sector because, with careers purely in the air force as senior officers, neither Sir Angus nor Ms Staib have real-world business experience.
Bonuses for Airservices senior executives soared by nearly 60 per cent last financial year.
Mr Smith claims the bonus system encourages Airservices executives to maximise industry charges and minimise expenditure on safety measures, to improve the bottom line and boost their take-home pay, claims denied by the organisation, which insists safety is primary.
“How can you have bonuses in a monopoly?” Mr Smith said.
The Australian is not suggesting that Sir Angus or Ms Staib have acted inappropriately.
Airservices financial records show that in 2012-13 the organisation paid $2.2m in salaries to its senior executives and $495,000 in bonuses. In 2013-14, the executive remuneration pool skyrocketed to $3.1m in salaries, with $778,000 in performance bonuses.
The Australian put questions on the figures to Airservices which were handled by spokesman Graham Robinson, but the responses, according to corporate accountant John Leece from chartered accountants Boroughs Australia, did not add up.
In a statement to The Australian, Airservices said while there were 10 executives in the 2012-13 figures, including two who worked less than six months in that year, the 2013-14 figures covered 11 executives, only one of whom worked less than six months.
“Executive remuneration increase from 2012-13 to 2013-14 was an average of 2.25 per cent,” Airservices said. “Airservices implemented an executive pay freeze for the current year.”
But even taking into account the particular factors Airservices listed, the average total remuneration package rose by over 20 per cent, and Mr Leece said it was impossible to reconcile that with the 2.25 per cent claimed.
“It was a nonsense,” Mr Leece said. “I took out 1.5 people — I was trying to give them the benefit of the doubt. “On a per-head basis it is a major increase, and to say it’s not is just not right at all. You can look at the bonus increase alone, which is considerable, for only a few people.”
Mr Leece noted that Airservices refused to answer several questions from The Australian which could have sorted out the inconsistencies, such as how much the additional employee got paid, and the highest individual salary percentage increase.
Sir Angus was unavailable for comment.
An average salary of $333,333 per annum (or $1,282 per day) - plus bonuses!
Who sets these salaries, the Board? Are they comparable to other Government authorities and the private sector?
Thread Starter
$4,000,000 / 12 employees = average $333,333.33 per employee
$333,333 / 52 weeks = $6,410 per week
$6,410 per week / 5 days = $1,282 per day plus bonuses.
Be nice to have a snout in that trough?
$333,333 / 52 weeks = $6,410 per week
$6,410 per week / 5 days = $1,282 per day plus bonuses.
Be nice to have a snout in that trough?
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Absolutely disgraceful 
. What are these people doing, to justify these obscene amounts of money..?? They're public servants for goodness sake. As for receiving bonuses, well that is ludicrous. As has been stated previously, they have no competition..!! Who is setting their performance targets & KPI's (or whatever the latest performance measurement nonsense is being used these days)..? Fair dinkum, whoever has allowed this situation to develop over the last few years, should hang their head(s) in shame.
From what I saw of Ms Staib's performance at Senate Estimates a few months ago, which was possibly one of the most inept & embarrassing by a senior public servant in recent memory, a salary with one less zero on the end would better reflect her ability!!
. What are these people doing, to justify these obscene amounts of money..?? They're public servants for goodness sake. As for receiving bonuses, well that is ludicrous. As has been stated previously, they have no competition..!! Who is setting their performance targets & KPI's (or whatever the latest performance measurement nonsense is being used these days)..? Fair dinkum, whoever has allowed this situation to develop over the last few years, should hang their head(s) in shame. From what I saw of Ms Staib's performance at Senate Estimates a few months ago, which was possibly one of the most inept & embarrassing by a senior public servant in recent memory, a salary with one less zero on the end would better reflect her ability!!
First, I don't buy it.
But, second. It was posted on these forums not long ago, senior airline pilots wages. Some stated on here that figures upward of 300k was not unheard of. Some senior ATC positions are in the 200's.
I'm sorry I don't share the outrage. It seems about right.
BTW, these are not public service positions.
But, second. It was posted on these forums not long ago, senior airline pilots wages. Some stated on here that figures upward of 300k was not unheard of. Some senior ATC positions are in the 200's.
I'm sorry I don't share the outrage. It seems about right.
BTW, these are not public service positions.
I agree that the top execs running the show need to be earning more than their top AT controllers. So what do the top Ausi controllers get? The supervisors etc?
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alpha - which figure 'seems about right'..? $600K/year or $333K/year..? As the head of Airservices, a figure in the $300's sounds about right, but not $600K + plus bonuses..! (If in fact this figure is accurate). That would mean she is earning more than the Prime Minister of the country. Its debatable whether he's worth that much either, but $600K?? You may be right about senior pilots and ATC earning $200-$300K but I can guarantee they are actually EARNING it. The daily pressure & responsibility they carry can't be compared to the lifestyle of this lot. Public servants, strictly speaking maybe not, but bureaucrats all the same. Busy lining their own pockets at the expense of the industry and the general public .
.
IFEZ,
300k sounds about right for an EGM. As for the CEO, do I think the current CEO is worth that? She is better than the previous CEO, but she could do better. Do I think the CEO position is worth that? Yes that figure seems reasonable.
Yes that means she is earning more than the prime minister. I would think so are nearly all other CEO's. Any comparison to government positions is null and void. Airservices stopped being public service the day it split from the CAA. It takes no money from the Gov't and makes alot of money for it. The Government dictates how much money it will take.
I disagree....strongly.
Is about the only thing we agree on. The bureaucracy and politics is extremely frustrating, but it also exists within the airline and private aviation sectors.
Alpha
300k sounds about right for an EGM. As for the CEO, do I think the current CEO is worth that? She is better than the previous CEO, but she could do better. Do I think the CEO position is worth that? Yes that figure seems reasonable.
Yes that means she is earning more than the prime minister. I would think so are nearly all other CEO's. Any comparison to government positions is null and void. Airservices stopped being public service the day it split from the CAA. It takes no money from the Gov't and makes alot of money for it. The Government dictates how much money it will take.
You may be right about senior pilots and ATC earning $200-$300K but I can guarantee they are actually EARNING it. The daily pressure & responsibility they carry can't be compared to the lifestyle of this lot.
Public servants, strictly speaking maybe not, but bureaucrats all the same
Alpha
Torres,
Like the way you have explained it, of the 52 weeks, is it more like 46 weeks after holidays are taken into account ?
Not sure if I had the correct person, had the understanding there were very senior managers in ASA with no air traffic or ATC technology experience, former logistics officers in the RAAF. Shook my head, not only no real world business experience, no relevent industry experience.
Does ASA have a employ work place bully policy, where most companies seem to have an employee anti-bully policy ?
Like the way you have explained it, of the 52 weeks, is it more like 46 weeks after holidays are taken into account ?
Not sure if I had the correct person, had the understanding there were very senior managers in ASA with no air traffic or ATC technology experience, former logistics officers in the RAAF. Shook my head, not only no real world business experience, no relevent industry experience.
Does ASA have a employ work place bully policy, where most companies seem to have an employee anti-bully policy ?
Since when are salaries advertised as an annual amount minus holidays? Someone earning $1000pw with 4 weeks leave a year doesn't earn $48000pa, they earn $52000pa. Assuming of course that they are full time (or anything other than casual/contract).
The reality is that the pay is over 52 weeks regardless of whether you get 4 weeks leave or 12 weeks leave.
The reality is that the pay is over 52 weeks regardless of whether you get 4 weeks leave or 12 weeks leave.
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The annual report would clear this up would it not? I'm no fan but the journalists figures are significantly wrong. You don't fight and win a battle by bull****ting & exaggeration.
Ms Staib is a significant improvement on the useless turd that occupied her position previously.
Ms Staib is a significant improvement on the useless turd that occupied her position previously.
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Employees and employers in Australian Aviation struggle to turn a profit and these government mobsters make hundreds of thousands for maintaining the status quo?
Has anybody here ever worked for a company that has gone under? This of course, is a rhetorical question, because working in aviation in Australia means that more than likely you've worked for one or two.
CASA and Airservices are like the Financial Administrators. They cut out the people that won't play along, reduce outward costs and suck all the money they can out of the body until there's nothing left.
The worst part it seems, is that the people that are most passionate, carry the most heart break for the industry they want to live for. Whilst people in government positions simply keep their head down in order to watch their bank balance grow by zero after zero.
Caution: Spoken from the heart and not the head.
Has anybody here ever worked for a company that has gone under? This of course, is a rhetorical question, because working in aviation in Australia means that more than likely you've worked for one or two.
CASA and Airservices are like the Financial Administrators. They cut out the people that won't play along, reduce outward costs and suck all the money they can out of the body until there's nothing left.
The worst part it seems, is that the people that are most passionate, carry the most heart break for the industry they want to live for. Whilst people in government positions simply keep their head down in order to watch their bank balance grow by zero after zero.
Caution: Spoken from the heart and not the head.
Caution: Spoken from the heart and not the head.
I would be interested in your answer to the following question.
Apart from Airways Charges (and landing fees which we collect on behalf of the aerodrome, that money does not go to Airservices), what other charges do you think Airservices are responsible for?
I think the answer may surprise you and also indicate to you that your anger may be misguided.
From memory....(not reeel good)...
When 'we' in airservices were changed from 'Public Servants' to Government Business Enterprise (GBE) 'staff' in 'ancient' times, it was explained to us, that, as a 'Business Enterprise' owned by the Govt., under the 'User Pays' scheme, charges would be levied for our services to fund us, and any 'surplus' ....'profits'....would be split between the 3 'stakeholders'.
The 'stakeholders' were defined as being Airservices, the Industry, and the Govt.
So, in theory, the profits generated from the Air Nav Charging system, is split by returning to;
- The Industry, their share, presumably through lower charges (?),
- Airservices Australia through better salaries / bonuses (?), and,
- The Govt.
With the various changes over the years, of which I have 'little' interest now,
I guess that CASA would be in there as well...
That 'may' be the source of these bonuses etc but, please. don't quote me now. Its been 'a while' and I've lost interest...trooly....
Cheers
When 'we' in airservices were changed from 'Public Servants' to Government Business Enterprise (GBE) 'staff' in 'ancient' times, it was explained to us, that, as a 'Business Enterprise' owned by the Govt., under the 'User Pays' scheme, charges would be levied for our services to fund us, and any 'surplus' ....'profits'....would be split between the 3 'stakeholders'.
The 'stakeholders' were defined as being Airservices, the Industry, and the Govt.
So, in theory, the profits generated from the Air Nav Charging system, is split by returning to;
- The Industry, their share, presumably through lower charges (?),
- Airservices Australia through better salaries / bonuses (?), and,
- The Govt.
With the various changes over the years, of which I have 'little' interest now,
I guess that CASA would be in there as well...
That 'may' be the source of these bonuses etc but, please. don't quote me now. Its been 'a while' and I've lost interest...trooly....
Cheers
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Took Porters advice and had a look at the 2013/2014 Airservices Annual Report. The journalists figures are wrong but not significantly.
Highest paid (presumably CEO) including Salary + Super + Bonus = $537K
Next level down - 3 people including Salary + Super + Bonus = $507K each
And so it goes, down the list of 11 Senior Executives to the poor pleb at the bottom of the rung who's only pulling a measly $209K. Mind you, that included a bonus of $57K!!
In most cases the figures represent substantial increases from the previous year which are listed underneath (between 5-10%).
Alpha may be correct, in that most CEO's and senior executives are getting similar or even more, depending on the size of the company they are with, but does that make it right..? The question is, did changing to user pays GBE as per Griffos advice, make the service any better..? Are we getting value for money..? Its a genuine question, as I wasn't involved in the industry in the 'good old days'.
Highest paid (presumably CEO) including Salary + Super + Bonus = $537K
Next level down - 3 people including Salary + Super + Bonus = $507K each
And so it goes, down the list of 11 Senior Executives to the poor pleb at the bottom of the rung who's only pulling a measly $209K. Mind you, that included a bonus of $57K!!
In most cases the figures represent substantial increases from the previous year which are listed underneath (between 5-10%).
Alpha may be correct, in that most CEO's and senior executives are getting similar or even more, depending on the size of the company they are with, but does that make it right..? The question is, did changing to user pays GBE as per Griffos advice, make the service any better..? Are we getting value for money..? Its a genuine question, as I wasn't involved in the industry in the 'good old days'.
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Airservices as a Business Enterprise
Sounds great in theory but when will they ever pay market rates for the land they occupy on airports. All these towers and navaids scattered around the country that generate the income and they're paying a buck a year for the leases. If true user pays is supposed to be in place, how about paying realistic rents for those VOR and NDB sites that sit around the country. Pretty quick to charge $33k to flight check an ILS though.
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top execs running the show need to be earning more than their top AT controllers
Who is more important to "the company", the CEO or the janitor?
Well, if they both take 2 weeks holiday. No-one will even know the CEO is gone, but when the toilets don't get cleaned and all the bins fill up with rubbish, that's when you realise that the Janitor is worth as much, if not more, to the company than the CEO.
The first person you talk to when you call a company is the receptionist, he's / she's the one who gives everyone their first impression of the company, but she's / he's the one that is paid the least.
If a plane crashes into another in the cloud, was it the CEO or the controller who made the mistake? so who's more important to the passengers on those planes?
There is no person, in any company or organisation, who is actually more valuable than any other person. The organisation requires everyone to do their job well.
Top executives do NOT deserve more than the people doing the job.