FEAR & GREED | Business News Q+A: The truth about executive pay in Australia
Apr 1, 2026
Al Jurangpathy, principal at Korn Ferry who advises boards on executive pay and governance, joins to unpack how executive pay is structured in Australia. He covers links between executive equity and everyday superannuation. He explains common pay mixes, CEO talent shifts and the effects of the two strikes rule. He also compares headline awards with the real hurdles behind them.
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Executive Pay Affects Everyday Super Balances
- Executive pay connects directly to everyday Australians through superannuation exposure to equities.
- Al Jurangpathy explains realized CEO pay often stems from equity that, when tied to long-term share gains, benefits retirees' super balances.
ASX100 Pay Is Built Around Long Term Incentives
- Typical ASX100 pay structure is roughly one-third fixed pay, one-third short-term incentives, one-third long-term incentives.
- Realized pay skews toward performance-linked instruments because LTIs vest over 4–5 years and drive ultimate outcomes.
Two Strikes Encourages One-Size-Fits-All Pay
- The two strikes rule has pushed Australian companies toward homogeneous reward structures, even when strategy differs.
- Al Jurangpathy cites Xero adopting US-style pay and still receiving a strike as evidence of mismatch and inefficiency.