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The mega-money at MacBank

Macquarie Bank has been dubbed the “millionaire’s factory” for over a decade, despite the Sydney-based bank’s apparent objections. But now there’s no denying it.

It is believed that nearly all the 2,076 staff who sit at “director” level – that is associate directors, divisional directors, executive directors and above – received at least AU$1m (US$824k) in the past year.

The bank’s annual report revealed managing director Allan Moss and investment bank head Nicholas Moore took home AU$33.5m and AU$32.9m respectively, by far the biggest pay cheques for any listed Australian company.

The bank insists that its pay scales are in line with its global competitors – Macquarie now sources 57% of its profit overseas, much of this from Asia – although the top ranks still pale in comparison with the major Wall St firms.

Fixed remuneration (AKA salaries) accounted for just 3.1% of the AU$207m paid out to the top 12 divisional heads in 2006/07. A massive 62.6% came from short term bonuses relating to their share of bank profits, while another 34.3% came in the form of long term bonuses, a mix of retained profit share, options, and stock.

Still, Macquarie is finding it harder to retain its senior staff. In the last year, voluntary turnover at director level rose from 5% to 7% – suggesting that 140 had quit in the past 12 months – but the turnover rate in international centres such as Asia, Europe and the US was up to 14% – double the bank-wide average.

The bank says one quarter of its director-level staff have been with the company for 10 years or more, but one third – many from new acquisitions such as ING’s Asian equities business – have been with the group for three years or less.

Comments (8)

  1. just a quick comment regarding the 2000 odd directors at Macquarie receiving $1m or more, if you do your maths right that would equate to more than its annual profit!!!!

  2. Hi Kevin,

    Macquarie’s profits are calculated after the payment of salaries. Macquarie paid $3.57 billion in staff compensation this year – 52% of its revenue. The bank employs 2000 directors, as per its annual report.

    Sarah, Editor eFinancialCareers Reply
  3. Hi Sarah,

    Can I get a job in finance if I already knew that? I’m tired of IT, I want to get paid to analyse equities and investments which is what I do most of the time anyway.

  4. Yep, that may be the case but I do know a lot of directors and they don’t all get anywhere near 1m

  5. Kevin Duong…you made a mistake. Pull your head in.

  6. Andrew: This may be several months too late, but you’ll probably need another qualification if you want to jump into research from IT. The CFA should be a help…

    Sarah, Editor, eFinancialCareers Reply
  7. I think its a good time to short mbl.ax.

  8. Kevin,

    It is evident you have not paid much attention when your accounting lecture was going on. No company in their right mind, except Telstra of course, would pay their execs more than it can afford. So maybe try looking up the proper info before coming to these conclusions?

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