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Macquarie’s pay cuts: sensible or shocking?

Macquarie’s bosses were always going to get a pay cut, but did you expect it to be quite this big?

Macquarie Group chief executive Nicholas Moore’s remuneration has dropped by a whopping $26m million to just $290,756.

Senior executive pay has decreased dramatically too, in line with the bank’s flagging share price and 52% fall in net profit. The firm’s total wage bill for its executive team decreased from $124.7m to $11.36m.

Will these cuts make it harder for the so called “millionaire’s factory” to recruit and retain senior talent? Or is Macquarie simply implementing a sensible reward strategy in tough times?

Is it actually ahead of its foreign investment banking rivals in curtaining compensation to meet market conditions? Let us know below.

Comments (12)

  1. After the largest ever drop in full-year profit, these cuts seem reasonable.

  2. Moore says it right….
    “There’s a lot of components to what is happening with remuneration. It’s an outcome that is consistent with the underlying performance of the organisation.”

  3. MQ still rewards those who perform:
    The highest paid Macquarie executive is Andrew Downe, who earned $3.7 million – head of treasuries and commodities division.

  4. Macquarie’s board has made a sensible decision on pay – one which larger i-banks should also be following.

  5. Yet again Macquarie has pulled wool over the eyes of the market. A closer look at Macquarie’s remuneration report shows that CEO Nicholas Moore actually earned $6.13 million in 2009, but lost $5.84m on restricted profit share allocated in previous years, giving us the reported $290k. Given Moore earned $26m in 2008, he’s hardly doing it tough.

  6. Big Deal! it is only for one year paycut and I’m sure they will not be eating Maccas for lunch from now on.

  7. Totally agree with Disgruntled… they have totally got everyone fooled…

    Another disgusting thing is that the junior bankers were went back around ~90%. Clearly – the concept of senior bankers taking the risk/reward doesn’t really work at Macquarie – the top guys rake it in during the good years (with little upside to juniors) and juniors are left to bear the brunt during the bad years. Totally disgusting and not in-line with the other ibanks.

  8. Agree with disgruntled and Gipped. Mac Bank is a joke and continues to try and hide the true position of not only its senior exec remuneration levels but its whole business. Why would the Aust Govt support this opaque farce? When will the market wake up to this?

    Get Real Mac Bank Reply
  9. I’ve heard that junior Macquarie analysts (who would typically work 80-100 hours per week) got bonuses of less than 10-15k.

  10. amazed.. that’s right its more like less than 10k…

  11. Agree with Amazed – There has been talk of a 25% bonus reduction for top executives in some divisions compared to a 90% reduction for the junior guys who have not been made redundant. For a company which places so much emphasis on young employees as their most valuable resource, they show a surprising disregard when their own remuneration is threatened.

    Also disgruntled Reply
  12. No point in complaining. The senior guys at Macquarie know that there are thousands of young people lining up to work at Macquarie. So staff who aren’t happy with their bonuses this year can leave if they feel ripped off as they will be easily replaced. Macquarie will still emerge the winner and the leavers would be cutting off their noses to spite their face. That unfortunately is the reality of the current economic environent.

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