Egan Associates featured in two articles this week, one on bonus pay in the public service and the other on the gender pay gap in Australia’s top Board rooms.
The first article revealed that the number of executives in the public service who are receiving a bonus is declining, and that the size of bonuses is often too low with one bonus amounting to only $3. The Canberra Times sought John Egan’s views on this finding.
“Three dollars is an insult. It’s better to give that to the Salvation Army,” John Egan said. “If you haven’t bothered to differentiate on performance, it’s not really a bonus.”
It is Egan Associates’ view that bonuses need to comprise at least 5% of salary in order to be meaningful.
Egan Associates believes that the Australian Public Service should make more use of bonuses to retain and improve commitment of top staff – around the top 30% of employees – but acknowledges that this will require skilled management to implement well.
The full article can be read on the Canberra Times’ website.
Egan Associates Principal John Egan explained to the Australian Financial Review that when companies hire female Directors, they are generally of a very high calibre, having had a key financial management role or moved up through the ranks to become a senior executive.
John Egan also stated that senior members of professional firms and/or those in key corporate roles will often bring a set of experiences to a Board which are well suited to either chair or join one of the Board’s key committees, notably those dealing with audit and risk as well as people, culture and remuneration. This level of skill makes female Directors well suited to take on committee chairman or membership roles.
The full article can be read on the Australian Financial Review’s website. (Subscription.)