Politics

People Are Furious That CEOs Have Pocketed Millions While Using JobKeeper To Pay Staff

“If you’re getting taxpayer subsidies, the CEO shouldn’t be getting a bonus.”

by Rachael Conaghan  1 September 2020
more newstart money please

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People are furious after discovering that CEOs are still collecting millions of dollars in bonuses while relying on the taxpayer-funded JobKeeper scheme to pay their staff.

JobKeeper was designed to subsidise wages for businesses who are struggling to pay their employees during the pandemic, but clearly some of them haven’t been hit hard enough to scrap bonuses for their millionaire executives.

In parliament yesterday Federal MP Andrew Leigh named and shamed those CEOs who have continued to pocket hundreds of thousands of dollars each.

“Recessions hit the poor hardest, which is why Australia followed many countries around the world in implementing a wage subsidy scheme,” he said. “But a scheme designed to reduce inequality is being misused by a small number of firms, who are channelling it to executive bonuses.

“If you’re getting taxpayer subsidies, the CEO shouldn’t be getting a bonus.”

Leigh kicked off his speech by calling out Accent Group (which includes brands like Timberland, Hype, Vans and Dr Martens), who received $13 million in JobKeeper to pay staff through the pandemic. Meanwhile, CEO Daniel Agostinelli pocketed a $1.2 million bonus, which must be pretty nice.

Star Casino was also singled out for receiving $64 million in JobKeeper while giving CEO Matt Barkier an equity bonus worth $800,000. It really helps to put their $5,000 fine for breaching public health orders in perspective.

Andrew Barkla, whose $37 million pay packet made him last year’s highest-paid CEO, was also slammed for taking home a $600,000 bonus. His company IDP Education, which offers services for international students wanting to study in Australia, received $4 million from JobKeeper.

But it doesn’t stop there — shareholders are also continuing to collect some pretty sweet payouts during the pandemic.

1300 Smiles, for example, received $2 million in JobKeeper and paid out $3 million to shareholders. Since the managing director Daryl Holmes owns two-thirds of the company, he’s set to pocked around $2 million.

The figures are particularly infuriating given that the government has ignored other industries who have been desperately crying out for government assistance.

In May government made changes to JobKeeper that excluded university staff. Casuals who’ve worked for an employer less than a year were also left out, as were freelancers and people on temporary visas.

The JobKeeper scheme is open to business who have experienced a 30 percent fall in revenue since March 1, or a 50 percent fall in revenue if they have an annual turnover of more than $1 billion. Businesses must legally pass on the full $1,500 payment to their employees, and Prime Minister Scott Morrison has previously warned any businesses who don’t can expect to be cut off from further payments and feel the full weight of the law.

Come September the JobKeeper wage subsidy will fall from $1,500 to $1,200 a fortnight. People working fewer than 20 hours a week will receive $750.