Australia Post hands out $170k bonuses for some of its highest paid staff – and they’re paid for by YOU
- More than $170,000 in bonuses were given to highly paid Australia Post staff
- The Senate’s estimate committee heard one senior executive was paid $500k
- Australia Post defended payments as ‘short-term incentives’ rather than bonuses
- Payments averaging $168k given to 31 staff earning $300,000 to $400,000
Australia Post has defended its decision to dish out more than $170,000 in bonuses to highly paid staff using taxpayer money last financial year.
The Senate‘s estimates committee heard on Tuesday that five senior staff members were given a retention payment to ensure a competitor did not poach them.
The largest of retention payments was given to one senior executive, who received a $500,000 gratuity, to be cashed out over three years.
Australia post (pictured) has defended its decision to dish out more than $170,000 in bonuses to highly paid staff
A ‘short-term incentive’ bonus averaging around $168,000 was also given to 31 employees earning between $300,000 and $400,000.
The incentives were handed out during the 2020-21 financial period, resulting in a 22 per cent increase to bonuses given for that salary band in the previous year.
Australia Post chair Lucio Di Bartolomeo has defended the payments, insisting they were part of ‘contractual remuneration arrangements’, rather than bonuses.
Australia Post chair Lucio Di Bartolomeo (pictured) has defended the payments as ‘short-term incentives’ rather than bonuses
One senior executive, who received a $500,000 gratuity, to be cashed out over three years, a Senate’s estimates committee heard on Tuesday
‘We certainly don’t see them as bonuses at all,’ Mr Di Bartolomeo told the Senate’s environment and communications legislation committee on Tuesday.
‘With our senior executives, we have contractual arrangements around the remuneration that provides two components of remuneration.’
One component of the salary is fixed while the other offers a short-term incentive payment subject to performance, he said.
‘Clearly, performance outcome from year to year may well see different payments being made. They are not increases in pay, they are not increases in bonuses,’ Mr Di Bartolomeo added.
However in a separate estimates hearing on Tuesday, Finance Minister Simon Birmingham said short-term incentives are considered bonuses.
‘A short-term incentive, which is paid against certain KPIs, I would shorthand that as a bonus,’ he said.
Ousted Australia Post CEO Christine Holgate (pictured) came under fire when details emerged she gave four staff members luxury $20,000 Cartier watches as a bonus in 2018
‘A long-term retention payment, I wouldn’t necessarily shorthand that in the same way.’
More than $78million in bonuses were paid to 2,706 employees last financial year, with 15 staff members earning $400,000 to $500,000 receiving almost $233,000 in bonuses.
The spending – which was labelled ‘out of touch’ by Greens senator Sarah Hanson-Young, is a sharp increase from the 2018 bonus scandal which rocked Australia Post.
Ousted Australia Post CEO Christine Holgate came under fire when details emerged she gave four staff members luxury $20,000 Cartier watches as a bonus.
Ms Holgate gifted the taxpayer funded watches to executives as a reward for securing a Bank deal which earned Aus post $220 million.
This year, just 152 out of 32,755 frontline Australia Post staff receiving less than $100,000 a year received a bonus.
The figure is a startling contrast to 2020 where 99 per cent of employees in that award band received a bonus payment.