Search

"Last chance, Mr Banducci": Woolies CEO threatened with jail time

Outgoing Woolworths CEO Brad Banducci has been threatened with jail time for refusing to answer questions about price gouging at a fiery Senate enquiry. The parliamentary probe into supermarket prices has seen Banducci be grilled by senators about how the supermarket raked in record-breaking profits during the ongoing cost of living crisis. During the enquiry on Tuesday, Banducci was repeatedly warned by committee chair and Greens senator Nick McKim about giving evasive answers when asked about his company's return on equity. Banducci repeatedly told the committee that return on equity was not his focus, and Woolworths is instead more interested in return on investment, refusing the question and prompting a 15-minute adjournment. When the enquiry resumed, a similar exchange occurred, leading to another warning for the Woolworths chief executive. "Last chance, Mr Banducci," McKim said. "Do you accept that return on equity is an accepted measure of the financial profitability of a company?" When Banducci replied that "we measure return on investment", the committee was suspended. Its return immediately saw another round of the same questions and answers, with McKim warning Banducci about the consequences of not answering questions clearly. "It is open to the Senate to hold you in contempt, and that carries potential sanctions including up to six months imprisonment for you," he said after saying the Woolworths boss could simply say he didn't know the answer and take the question on notice. "That's why this is a critical matter so I'd just ask you to address your mind with absolute clarity, please, to the question I am asking." "I put it to you the reason you don't want to focus on return on equity is because you don't like the story that it's telling, which is that you are basically profiteering and making off with massive profits at the expense of farmers at the expense of your workers and at the expense of Australian shoppers who you are price gouging," Greens senator McKim said. The enquiry is still ongoing, with Coles counterpart Leah Weckert set to address the same Senate committee later on Tuesday as the government continues to probe allegations of price gouging. Image Credits: ABC - Four Corners

Legal

New Woolies CEO's huge salary revealed

Woolworths have announced their new CEO, just hours after Brad Banducci shared the news of his <a href="https://www.oversixty.com.au/lifestyle/retirement-life/woolies-ceo-quits-after-disaster-interview" target="_blank" rel="noopener">retirement</a>. After almost nine years at the helm, Banducci is stepping down after a <a href="https://www.oversixty.com.au/finance/money-banking/i-think-i-m-done-the-question-that-made-woolies-ceo-leave-interview" target="_blank" rel="noopener">trainwreck interview</a> with ABC’s Four Corners, and while still facing backlash over the decision to not stock Australia Day merchandise. Now, his replacement has been announced, with Amanda Bardwell set to step into the role in September. Ms Bardwell was appointed to the role following an “extensive international search process”, which Woolworths Group Chair, Scott Perkins said was supported by external consultants. “We are thrilled to announce the appointment of Amanda as the incoming and 13th Managing Director and Group CEO of Woolworths Group, as the Group starts its next century of creating better experiences together for a better tomorrow,” Mr Perkins said in a statement. When Ms Bardwell steps into the role, she is set to receive a generous pay packet of $2.15 million, as well as additional generous bonus incentives. While this number seems extravagant, it pales in comparison with the $7.65 million Banducci took home last year. Mr Banducci’s pay was even higher in 2022, with a take home pay of $8.37 million, but money was knocked off from his short term bonuses, after the discovery that there was nearly $600 million in underpayments across Woolworths’ payroll going back years. The revelation of his extortionate pay packet in the wake of his resignation has angered many, with social media users airing their grievances over his salary, given that many Aussies continue to struggle to keep up with the rising costs of supermarkets as the cost of living crisis continues. Mr Banducci’s retirement was announced in a statement to the ASX on Wednesday morning, with the former boss saying it has been a “privilege” to be a member of the Woolworths team and one he has “never taken for granted”. A spokesman for Woolworths said Mr Banducci’s retirement announcement was not connected in any way to the recent Four Corners interview. Image credits: Woolworths

Money & Banking

Woolies CEO quits after disaster interview

Woolworths chief executive Brad Banducci has announced his retirement amidst a flurry of challenges facing the Australian supermarket behemoth. As the company grapples with a staggering loss and contends with allegations of price gouging and unfair dealings with suppliers, the announcement of Banducci's departure marks a significant shake-up at the top. The supermarket giant wasted no time in appointing a successor, promoting Amanda Bardwell to the coveted position after what was described as an "extensive international search process". Bardwell, a veteran of the company with 23 years of experience, currently leads WooliesX, a vital sub-division within Woolworths. Banducci's retirement comes hot on the heels of Woolworths' latest financial results, which revealed a substantial $781 million statutory loss. This loss was largely attributed to a $NZ1.6 billion ($1.5 billion) writedown in the value of its New Zealand grocery business and a $209 million reduction in the value of its stake in ASX-listed alcohol and hotels spin-off Endeavour. Despite these setbacks, Woolworths managed to announce a 2.5 per cent rise in half-year profit to $929 million, buoyed by a 4.4 per cent increase in revenue compared to the previous year. However, amidst these financial intricacies lies a more troubling narrative. Woolworths has found itself embroiled in allegations of price gouging and unfair practices with suppliers, casting a shadow over its operations. The spotlight intensified with the release of an ABC investigation featuring a contentious interview between Banducci and reporter Angus Grigg. The interview, part of a comprehensive examination of the Australian supermarket industry amid the ACCC's investigation into allegations of unfair pricing, saw Banducci visibly flustered and defensive. The program scrutinised how supermarkets profit from rising prices amid a cost of living crisis and included conversations with key industry figures, including Banducci and Coles boss Leah Weckert. Banducci's exchange with Grigg, particularly his dismissal of former ACCC head Rod Sims' remarks, underscored the tension surrounding the allegations. Banducci's subsequent request to edit his comments mid-interview, followed by a brief exit to confer with his PR team, highlighted the sensitivity of the issue. Grigg, reflecting on the incident, described Banducci's reaction as "pretty startling", while pointing out that the lack of scrutiny faced by supermarket executives over the years was very significant. Images: ABC / Woolworths

Retirement Life

"I think I'm done": The question that made Woolies CEO leave interview

Woolworths CEO Brad Banducci has cracked under the pressure during a tense interview with ABC's Four Corners. The supermarket boss sat down with reporter Angus Grigg as part of a deep dive into the supermarket industry in Australia amid the ACCC's investigation into allegations of unfair price gouging. The program questioned how supermarkets have been profiting from rising prices amidst the cost of living crisis and spoke with a number of key players, including Banducci and Coles boss Leah Weckert. The supermarkets have long denied the allegations have since become the focus of investigations by both the Senate and the Australian Competition and Consumer Commission (ACCC). “Rod Sims, the former head of the ACCC, says that we have one of the most concentrated supermarket [sectors] in the world, is he lying?” Griggs asked Banducci. “It’s not true. [He’s] retired, by the way,” Banducci said. The comment caught Griggs off guard, to which he responded, “I don’t think you would impugn his integrity and his understanding of competition law. He retired 18 months ago.” Banducci then began to appear agitated and asked if his comments could be removed. <blockquote class="twitter-tweet"> This is what happened when Four Corners asked Woolworths CEO Brad Banducci about the lack of competition in the Australian grocery market. Watch the <a href="https://twitter.com/hashtag/4Corners?src=hash&ref_src=twsrc%5Etfw">#4Corners</a> documentary tonight: <a href="https://t.co/dDRYGLaw2i">https://t.co/dDRYGLaw2i</a> <a href="https://t.co/bsrJD9IETB">pic.twitter.com/bsrJD9IETB</a> — ABC News (@abcnews) <a href="https://twitter.com/abcnews/status/1759391473567490367?ref_src=twsrc%5Etfw">February 19, 2024</a></blockquote> “Can we take that out? Is that ok? Angus, are we going to leave it in?” he said. “I shouldn’t have said that about Rod, about him being retired. I mean, he is retired, but I shouldn’t have said that. Are we going to leave that in there?” Upon being told that his comments were “on the record” and would not be taken out, Banducci said, “I think I’m done guys.” “I do this with good intent, and I don’t do this with bad intent,” he said as he walked away. “Really, you’re walking out?” Grigg asked. Banducci then disappeared from view, reportedly to talk with his PR team, before returning a few moments later to complete the interview. Speaking to ABC’s News Breakfast on Monday after the episode aired, Griggs called the move “pretty startling”. “I think it shows you that, there you have the boss of the largest supermarket chain in the country really unwilling to face too many questions,” he said. “It shows how little scrutiny they’ve had over the years and I think that’s a really big problem.” Image credits: ABC

Money & Banking

Why Gladys likely won't be the new Optus CEO

Rumours are swirling that former NSW premier Gladys Berejiklian could be taking the top job at Optus after former chief executive Kelly Bayer Rosmarin resigned on Monday. According to NCA NewsWire, the former premier has flagged her interest in the role as Optus launched its global search for the chief's replacement. Berejiklian was responsible for managing the company’s business customers in early 2022, but there's one massive roadblock that might stop her from becoming the next Optus CEO. Any decision to promote Berejiklian could be seen as risky after she was found to have engaged in serious corrupt conduct with former Wagga Wagga MP and partner Daryl Maguire, by the NSW Independent Commission Against Corruption (ICAC). Despite appealing the findings, it is highly unlikely that Berejiklian would get the job after the ICAC ruling. Although the decision itself would ultimately fall with the Optus board, Greens senator Sarah Hanson-Young said that she wanted someone who “understands that we need better regulation and work with the government, not against them”. “I think Gladys will have to get some other things off her desk before she steps forward," she said. “What I want to see is somebody who puts the public interest first, is honest and has integrity.” Berejiklian has stayed silent on the matter, with Optus chief financial officer Michael Venter currently taking on the role of interim chief executive as the telecom company continues to lookout for a replacement. Image: Mark Kolbe/Getty Images

Legal

Top CEOs make workers’ yearly salaries in just FOUR days

Leaders of some of the UK’s biggest companies will have made more money by 9am local time (8pm AEDT) on January 7 than the average UK worker earns in a year. A new <a rel="noopener" href="https://highpaycentre.org/high-pay-day-2022/" target="_blank">analysis</a> from the High Pay Centre, a UK think-tank that campaigns for fair pay for workers, suggests that a FTSE 100 chief executive (working at any of the 100 companies listed on the London Stock Exchange) will have earned more than an average full-time UK worker’s annual salary. The High Pay Centre’s calculations are based on government statistics relating to pay levels across the economy, as well as previous analyses of CEO pay disclosures in annual reports. <blockquote class="twitter-tweet"> Today the median FTSE100 CEO's earnings for 2022 will surpass the median annual wage for a full-time worker in the UK Such extreme inequality is immoral, unacceptable & unsustainable. Wealth in this country has to be shared more fairly & more evenly<a href="https://twitter.com/HighPayCentre?ref_src=twsrc%5Etfw">@HighPayCentre</a> — Caroline Lucas (@CarolineLucas) <a href="https://twitter.com/CarolineLucas/status/1479354617167110145?ref_src=twsrc%5Etfw">January 7, 2022</a></blockquote> This year marks the first in the last ten years of reporting by the High Pay Centre where CEOs have made the same amount as average UK workers within the first four working days of the year. In previous reports, CEOs have typically surpassed the average yearly wage by January 6. According to data from 2020 - the latest full-year figures - FTSE100 CEOs were paid £2.7 million ($AUD 5.13 million) on average that year, which is nearly 86 times the average salary of £31, 285 ($AUD 29,385), as reported by <a rel="noopener" href="https://www.theguardian.com/business/2022/jan/07/ftse-bosses-pay-average-9am" target="_blank">The Guardian</a>. The 2020 financial year saw the average wage for CEOs fall, with many bosses taking wage cuts and cancelling their bonuses during the COVID-19 pandemic and subsequent lockdown. <blockquote class="twitter-tweet"> Today is <a href="https://twitter.com/hashtag/HighPayDay?src=hash&ref_src=twsrc%5Etfw">#HighPayDay</a>. Just prior to 9am today, CEOs' earnings for 2022 will surpass the median UK full time salary. As key workers face a cost of living crisis, we need urgent action to ensure wealth is shared more fairly in our society. <a href="https://t.co/RC5ah2daxs">https://t.co/RC5ah2daxs</a> — High Pay Centre (@HighPayCentre) <a href="https://twitter.com/HighPayCentre/status/1479347068330123269?ref_src=twsrc%5Etfw">January 7, 2022</a></blockquote> Though most companies are yet to release figures for the financial year ending in 2021, the High Pay Centre’s report found that 57 percent of those who have done so have recorded increased wages for CEOs. The country’s biggest unions have said the disparity between bosses and ordinary workers was “disgraceful”, demanding that companies be forced to appoint a frontline worker to executive pay committees. “The pandemic has shown us all who keeps the country going during a crisis,” Frances O’Grady, the general secretary of the Trade Union Congress, said. “There are millions of hardworking people in Britain - from carers, to delivery drivers, to shop floor staff - who give more than they get back, but greedy executives are taking home millions while ordinary workers face yet another year of pay squeezes. “As we emerge from the pandemic we need to redesign the economy to make it fair, and that means big reforms to bring CEO pay back down to earth.” Ms O’Grady said committees that set CEO pay must be “required to include workforce representatives who can speak up for a fairer balance of pay with ordinary workers”. “Incentive schemes for company directors should be replaced by profit-share schemes that include the whole workforce,” she added. “Too much wealth is being hoarded at the top.” Top earners in the UK included Pascal Soriot, the CEO of vaccine-maker AstraZeneca, who received £15.5 million ($AUD 29.4 million), Berkeley’s Rob Perrins, who collected £8 million ($AUD 15.2 million), and Experian’s Brian Cassin, who earned £10.3 million ($AUD 19.5 million). Meanwhile in Australia, the <a rel="noopener" href="https://www.afr.com/work-and-careers/leaders/revealed-australia-s-50-highest-paid-ceos-20211117-p599rf" target="_blank">Australian Financial Review</a> found that the paychecks of the country’s top bosses increased on average by 24 percent in the 2020-21 financial year, with Macquarie Group CEO Shemara Wikramanayake topping the list of high-earners with a reported pay of $15.97 million. As for New Zealand, a survey conducted by <a rel="noopener" href="https://www.stuff.co.nz/business/126432044/bosses-of-our-biggest-companies-can-earn-nearly-40-times-more-than-their-workers" target="_blank">Stuff</a> found that Kiwi CEOs received between 16 and 36 times worker pay, and that only half of the country’s 20 biggest companies were willing to disclose their median pay. According to the publication, Fletcher Building CEO Ross Taylor was the country’s highest earner, receiving $7 million ($AUD 6.6 million). Though the company refused to disclose its workers’ median pay, Mr Taylor made nearly 90 times that of his workers if they received the survey’s mean pay of $80,000 ($AUD 75,460). Sharon Graham, the general secretary of Unite the Union, took to twitter to criticise the continued heft of CEO salaries despite the pandemic. “Is it the nurse in an intensive care unit saving the lives of those struck by Covid, or an elite investment banker making millions, who contributes most to society?” she wrote on Twitter. “Which of them stood up for all of us during the pandemic?” Image: Getty Images

Money & Banking

CEO fires 900 employees over Zoom right before holidays

Better.com CEO Vishal Garg informed more than 900 employees that they were being let go from the company, which provides digital mortgage services for prospective homeowners, just weeks before the holidays in an online video call last week. On Wednesday, Garg informed the employees on the three-minute-long Zoom call that, "If you're on this call, you are part of the unlucky group that is being laid off. Your employment here is terminated effective immediately." He added that employees could expect an email from HR detailing benefits and severance. According to <a rel="noopener" href="https://www.independent.co.uk/news/world/americas/vishal-garg-better-ceo-fired-b1970887.html" target="_blank">The Independent</a>, terminated employees will receive a month of severance pay, a month of full benefits, and two months of cover-up during which Better.com will pay the premium. In a statement to CNN Business, CFO Kevin Ryan said, "Having to conduct layoffs is gut wrenching, especially this time of year. However a fortress balance sheet and a reduced and focused workforce together set us up to play offence going into a radically evolving homeownership market." The mass layoffs came just one day after it was revealed that the company, which announced its intention to go public in May, would be receiving a $750 million cash infusion from its SPAC (Special Purpose Acquisition Company) backers. Garg cited market efficiency, performance and productivity as the reason behind the firings. Fortune later reported that he accused the employees of “stealing” from their colleagues and customers by being unproductive and only working two hours a day. On the call, Garg said, “This is the second time in my career I'm doing this and I do not want to do this. The last time I did it, I cried,” while remaining emotionless throughout. Among those fired were the diversity, equity and inclusion recruiting team. Image: YouTube

Legal

Qantas CEO Alan Joyce on what international travel will actually look like

Australia’s national carrier has hinted at how the long awaited resumption of international travel may look. With Prime Minister Scott Morrison last week announcing borders will tentatively open for states that have reached 80% vaccine milestone next month, Australians have been told to dust off their passports. But Qantas boss Alan Joyce is warning overseas travel will look far different than it did this time two years ago. Speaking in Boston on Tuesday AEDT, Joyce provided details of how overseas travel will look. Vaccine passports remain a crucial component of the flight plan. Joyce said the airline was working with The International Air Transport Association on the technology for a digital travel pass to make the process as seamless as possible. Travellers can expect to have to undergo up to four tests of COVID-19, one prior to departure for each flight and two while home in quarantine. It’s yet to be established what would happen should a traveller test positive during a pre-flight test. Under current protocol, all pre-flight tests must come back negative before a traveller is allowed to board a flight for Australia. Joyce fears that the seven day home quarantine program, which is being trailed in NSW and closely watched in other states could be a deterrent. “Now while seven days home quarantine is a step in the right direction – we believe over time that needs to get shorter. “Australians coming home to visit relatives – or those eager to see friends and family overseas for Christmas – may be willing to do seven days quarantine.” “But certainly overseas tourists and business travellers will not come to Australia if that’s in place – particularly when there is no quarantine for travellers in most parts of the world.” The next priorities are skilled migrants that are very important for the country, as well as students.” Welcoming tourists back into Australia isn’t expected to occur until next year, he said. “We’re ready for take off”.

International Travel

"Stark but not surprising": Qantas CEO reveals staggering loss

Qantas has announced they have had a $1.08 billion half-year loss, following their dramatic $6.9 billion plunge in revenue due to restrictive travel bans and rules. The net loss before tax was $1.47 billion, however the airline will be able to offset part of that against future tax bills. "These figures are stark but not surprising," Qantas chief executive Alan Joyce said. "During the half we saw the second wave in Victoria and the strictest domestic travel restrictions since the pandemic began. Virtually all of our international flying and 70 per cent of domestic flying stopped, and with it went three-quarters of our revenue." The airline remains hopeful and said they still have $4.2 billion in available cash to keep going until Australia's international border reopens and domestic travel ramps up to more normal levels. Qantas is currently expecting international travel to resume more broadly at the end of October. They have started selling tickets to the UK or US for travel as early as July. The airline is hopeful of a "material increase" in trans-Tasman flying. Unfortunately there has been a COVID-19 outbreak in Auckland that has seen several states already reimpose quarantine restrictions on New Zealand arrivals. Qantas is hoping to have 60 per cent of pre-COVID domestic capacity by the end of March and 80 per cent by the end of June. The airline is currently running at just 8 per cent of international capacity. They are doing this through trans-Tasman and repatriation flights.

Money & Banking

AusPost offers bizarre excuses for CEO's overspending

<div class="post_body_wrapper"> <div class="post_body"> <div class="body_text redactor-styles redactor-in"> Australia Post CEO Christine Holgate and her personal office have spent a shocking $275,000 on corporate credit cards since her appointment. There are now demands for a line-by-line disclosure on the spending from Parliament. The spending, which the bulk of it is "organisational spending" could be the key to Holgate holding onto her role of CEO, regardless of whether or not the spending was legitimate under Australia Post policies. Insiders say that the terms of inquiry were established with references to her "personal expenses" that "sets up" Holgate and asks that a judgement be made over Aus Post executives adhering to "high standards regarding the expenditure of money". Holgate has a personal corporate credit card for her own use that racked up a surprisingly low $88,100 since she was appointed to her role as CEO three years ago. However, it's the second relatively new card that's been used for $287,000 in this financial year alone that has caught the attention of the Labor government. Australia Post has offered odd excuses as to why a line-by-line breakdown of spending can't be provided, including the former "work from home" requirements in Melbourne. “Australia Post’s Melbourne Headquarters have been closed for several months, due to the COVID-19 lockdown in metropolitan Melbourne. As a result, Melbourne office staff have been working remotely and access to some records has been restricted,’’ Australia Post said. Labor Senator Kimberley Kitching told <a rel="noopener" href="https://www.news.com.au/finance/work/leaders/australia-posts-bizarre-excuse-for-refusing-to-disclose-corporate-credit-card-spending/news-story/bae8362ceba28161aece0718f4cfe06a" target="_blank">news.com.au</a> that Australia Post’s explanation as to why it won’t provide an itemised list of spending does not make sense. “They should furnish the Senate with the credit card statements which I had already requested, but I was told that they couldn’t provide those statements because employees were working from home,’’ Senator Kitching said. After the previous chairman of Australia Post, John Stanhope, left the organisation in 2019, the "Office of teh CEO" took responsibility for any previous charges and the card that racked up the $287,000 bill was used to purchase flowers, catering, car hire as well as being used for travel expenses. “The Group Chief Executive Officer & Managing Director has not been issued with a travel charge card,’’ Australia Post said. “However, there is one credit card in the name of the ‘Office of the CEO’ used to pay for various organisational expenditure, including travel expenses. Organisational expenditure paid with this credit card totalled $287,063.44 for the 2019/20 financial year. “The credit card was used for a wide range of organisational expenditure, including in relation to the Group Chief Executive Officer & Managing Director, the Board Chair, the Executive Team, the Office of the CEO, and the Extended Leadership Team.” So far, Australia Post is refusing to provide a breakdown of expenses, saying it would involve an "unreasonable diversion of resources". “There is one credit card in the name of the Group Chief Executive Officer & Managing Director,’’ Australia Post said. “An itemised breakdown of the charges over this period (almost three years) would involve an unreasonable diversion of resources.” A report will be provided to the Morrison Government within four weeks of the investigation commencing. </div> </div> </div>

Money & Banking

Karl Stefanovic’s fiery interview with upset CEO of Jim’s Mowing

In a fiery interview with Karl Stefanovic on the Today show, Jim Penman, CEO and founder of national gardening franchise Jim’s Mowing, labelled Victorian Premier Daniel Andrews the “worst political leader since federation”. “This idea that he consults with business is ludicrous,” said Penman. “It is a joke.” “He is an utter incompetent. He has stuffed the quarantine, he is stuffing the contact tracing, he is stuffing the testing. The only thing he is good at is trashing the Victorian economy. “I cannot think of anybody remotely as bad as this.” “Our industry is no threat to public health at all,” Penman explained to Karl, referring to the sole operators currently working for his Jim’s Mowing franchises. “A lone operator working alone in a garden is no threat to health. But, when you throw tens of thousands of people out of work without need, you talk about mental health issues, suicide, drug addiction, domestic violence and the rest. “He should be tossed out by his own party.” Penman also wrote a highly critical letter to the Premier on September 7 after Daniel Andrews announced the extension of Victoria’s lockdown period: “Premier, you will have blood on your hands. Every day I hear stories of misery and despair. Putting people out of work without need is a massive risk to health and wellbeing. “I have one Franchisee whose son barely survived a suicide attempt. His daughter too is severely depressed... This extension has filled them with despair.” “Drop this senseless measure,” Penman appealed in his letter, asking Mr Andrews to “put human welfare” ahead of political advantage. Images: Getty Images

Home & Garden

Woolworths CEO responds to backlash after ‘Made in China’ paper bag furore

Woolworths CEO Brad Banducci has responded to new demands for more Australian-made products in stores. Addressing shoppers directly, Banducci says the supermarket is working on ways to make it easier to identify locally made products. The store came under fire after it was discovered that their new paper bags are made in China. Woolworths has also faced criticism over its decision to drop Aussie owned and made Farmers Co Peanut Butter from stores due to a “sustained period of underperforming sales”. There’s also a petition calling on all supermarkets to introduce an “Australian-made” aisle in their stores. Banducci has welcomed the calls for clearer signage on Australian-made products, saying “it’s a challenge we’re up for”. “As we start to recover from COVID, we understand how important it is to support Australian businesses and in turn our communities,” wrote Banducci in a recent email to customers. “That’s why, to support Australian dairy farmers, this week we announced that we will extend our existing dairy contribution payments for Woolworths branded two and three litre fresh own brand milk varieties until June 2021. “This extension is expected to contribute more than $30 million to dairy farmers, on top of the almost $50 million we, together with you, our customers, have already contributed. Thank you for your continued support for this key initiative. “This is in addition to our commitment to an Australian-first sourcing policy for fruit, vegetables and meat and supporting local products where possible. “We have also heard your feedback on how to make identifying Australian products easier when you’re shopping – it’s a challenge we’re up for and one we are working on.” Last week, the supermarket also announced it was looking to find a local manufacturer in Australia who could produce its new paper bags following the “Made in China” backlash.

Food & Wine

Russell Crowe pushes unlikely candidate for League CEO

South Sydney owner Russell Crowe is urging NRL executives to consider ex-Rabbitoh Shane Richardson as the next chief executive. The sport star was not tipped to be on the initial list of likely candidates to replace Todd Greenberg after he left the Rabbitohs last month, however he has had experience in working for the league when he filled in for the role as head of strategy and game development in 2015. Richardson also has 20 years of experience being an administrator, along with stints at Cronulla and Penrith. “There’s no better candidate available for the job. Simple fact,” Crowe explained to The Daily Telegraph. “None of the other candidates can match his time in the sport. His bloodlines go right through the game – NSW and Queensland.” The Australian actor went on to push for the NRL to have a rugby league person in the top position. Richardson is so far the only high-profile star to leave the game during the coronavirus hiatus, claiming he walked away to save money for the Rabbitohs. However, there is suspicion as to why he split the game and the former NSW State of Origin half Braith Anasta criticised Richardson’s exit. He went on to criticise whether the Rabbitoh’s supremo had taken a pay out and on Tuesday said there were many not supportive of his exit. “We all know what I thought of Shane’s exit from Souths,” Anasta told Fox League Live. “At the time he didn’t answer that question – if he had a job lined up at the NRL … which meant he was going for it. “Shane has a lot of enemies in the game, and I know that just from the feedback I received after I spoke about his exit at Souths. I just can’t see it working.” Stand-in chief executive Andrew Abdo continued to be the front runner to keep the job, while Souths CEO Blake Solly has already said he is not interested.

News

“Not enough”: Allison Langdon takes a swipe at childcare centre CEO over toddler’s death

Today’s Allison Langdon has confronted the CEO of a day care centre accused of leaving a toddler to die on one of its buses in 34C heat. Last month, a three-year-old boy <a href="https://www.oversixty.com.au/lifestyle/family-pets/we-don-t-know-what-happened-boy-three-dies-in-daycare-van">died after being left on a minibus</a> parked about 1.7km from Goodstart Early Learning childcare centre in the southern Cairns suburb of Edmonton. Temperatures on the day reached 34C. The childcare firm’s chief executive officer Julia Davison appeared on Today Tuesday morning after the company announced it would resume bus services to transport children to and from its centres. Davison said the company had apologised and remained in contact with the child’s family. When asked how parents can be reassured of their children’s safety under her care, she said full details of the Cairns incident were still being investigated. “What we do know is we have had a handful of bus incidents over the years here at Goodstart,” she said. “Every time we’ve had an incident, we’ve taken stock and we’ve reviewed and strengthened our policies and procedures.” Langdon responded, “We appreciate your turning out and talking to us today, but whatever you’re doing isn’t enough. A little boy is dead.” Co-host Karl Stefanovic added, “I don’t know how as a parent I would ever allow my child to go on your bus.” The childcare centre’s manager Michael Glen Lewis and childcare worker Dionne Grills were last week charged with manslaughter over the boy’s death. The Cairns Magistrates Court heard that Lewis and Grills allegedly picked up the boy from his home but <a href="https://www.abc.net.au/news/2020-02-26/toddler-died-childcare-centre-minibus-family-statement-thanks/12001614">failed to remove him from the bus when they arrived at the centre</a>. Prior to the February incident, the childcare franchise also saw a 14-month-old girl being left on one of its buses on the Gold Coast in 2018. The girl survived “<a href="https://www.abc.net.au/news/2020-02-26/toddler-died-childcare-centre-minibus-family-statement-thanks/12001614">despite enduring sweltering conditions for an hour</a>”, Shine Lawyers senior associate Susan Gandini said.

News

5 things CEOs always do before bed

Start tomorrow right – tonight! Anyone who has ever had to help a child with a school project at midnight or found themselves binge-watching Netflix until the wee hours of the morning knows that what you do at bedtime can have a huge impact on how the next day goes. Getting enough sleep is one of the best things you can do for your health, yet for too many of us, sleep is the first thing that’s sacrificed when life gets crazy. The second thing to go? Good bedtime habits. Even CEOs have to fight this temptation, but some of them have figured out how to do it successfully and consistently. We asked them to share the surprisingly simple night time tricks that help them have a happy, productive day. Set an alarm for bedtime instead of wake time Half the battle of getting a good night’s sleep is getting yourself to bed on time. Douglas Smith, CEO of True Nutrition, has discovered a great hack for making sure he’s consistent with his bedtime. “Most people set an alarm for waking up, but I’ve discovered it should be the other way around,” he says. “I set my alarm for 30 minutes before I should be in bed, and I stick to it. This helps me get to sleep at the same time every night. Once my body adjusted to it, I’ve found that I sleep better and I don’t even need an alarm to wake up. I wake up on my own, feeling well-rested.” Use a light-filtering app Blue light from screens interferes with your natural circadian rhythms, tricking your brain into thinking it’s morning instead of bedtime. Jason McCarthy, CEO of DigiNo, combats this by using apps that moderate the light from device screens. “I use the F.lux app. It gradually decreases the brightness and white light from the screen as bedtime draws closer,” he says. “This leads to much healthier and easier sleep. Plus, it reminds me not to keep working too late!” Sip some vinegar and honey Have trouble falling asleep? McCarthy swears by this bedtime tip courtesy of Tim Ferriss’ The 4-Hour Workweek. “He recommends drinking hot water with a spoonful of organic apple cider vinegar and natural honey as a sleep aid,” McCarthy explains. “No matter how busy my mind is from a stressful day at work, this drink manages to knock me out for a soothing sleep within 20 minutes. And it tastes better than you think it will!” Utilise a “mail butler” Managing email can feel like a full-time job for anyone, CEO or otherwise. And going to bed with a full inbox can make it hard to sleep, thanks to constant notifications or worries about missed items. This is why Billy Goldberg, CEO of the Buckeye Group, swears by Mailbutler, an extension for your email that automates certain tasks. “After dinner but before bedtime, I tidy up my inbox and get it down to zero. I use Mailbutler to ‘snooze’ emails and remind me of them at a set time in the future when I’ll need the information or need to follow up with someone,” he explains. “I use the extra time to hang out with my teenage daughters if they are into me at that moment.” Have a nutritious bedtime snack It’s hard to sleep if your stomach is grumbling, but a full tummy can also cause insomnia. In fact, overeating is one of the common mistakes insomniacs make. For Goldberg, the perfect compromise is a small snack high in fibre and healthy fats. “This may sound strange, but eating a spoonful of almond butter right before bed is the key to getting a good night’s sleep,” Goldberg says. “I wake up energised, and my blood sugar is maintained. Honestly, it’s been a game-changer for me!” Pack a gym bag Exercise can help improve your mood, increase your energy and even make you more creative, helping to set you up for a productive day. The only downside is that it can be hard to remember all of that when you’re dragging yourself out of a warm bed before the sun’s even up. For Joyce Shulman, CEO of Macaroni Kid, the trick is to prep the night before. “I set out my clothes for my morning workout in the bathroom, so when I get up at 5 am., I have no decisions to make – I just do it,” she says. “I also set up my coffee the night before because, well, coffee.” Written by Charlotte Hilton Anderson. This article first appeared in<a href="https://www.readersdigest.com.au/healthsmart/conditions/sleep/16-things-ceos-always-do-before-bed?slide=all"> Reader’s Digest</a>. For more of what you love from the world’s best-loved magazine, <a href="http://readersdigest.innovations.com.au/c/readersdigestemailsubscribe?utm_source=over60&utm_medium=articles&utm_campaign=RDSUB&keycode=WRA87V">here’s our best subscription offer.</a>

Caring

Woman named as highest paid CEO in Australia for first time ever

A woman has been named the highest paid CEO in Australia for the first time in history. 57-year-old Macquarie Group Chief Executive Shemara Wikramanayake earned a staggering $18 million throughout the last financial year. The former corporate lawyer earned $5 million more than the next corporate boss and is just one of four women to make the top 50 in OpenDirector's annual CEO pay report for the <a href="https://www.afr.com/">Australian Financial Review</a>. Wikramanayake is the daughter of Sri Lankan migrant and earned a base salary of $722,000 - however it was her remuneration package that swelled with performance bonuses and share options. Shockingly, the big boss earns over $346,000 a week which is more than 211 times the average Australian full-time worker's $85,000 salary. Not only is she the highest earning female in Australian history, she was also made the Macquarie Group’s first-ever female managing director last year. She was first hired in 1987 and had previously worked for the company in nine cities across the globe. The three other to make the top 50 list included Coca-Cola Amatil CEO Alison Watkins, who raked in $4.1million, Mirvac Group's Susan Lloyd-Hurwitz on $4.8million and Fortescue Metals boss Elizabeth Gaines on $5million. In 2019 the 57-year-old was also named one of Fortune's 'Most Powerful Women' for her work on climate change and role with the World Bank's Global Commission on Adaptation.

Money & Banking

Why Australia paints Qantas CEO Alan Joyce as a superhero

Alan Joyce is Australia’s <a href="https://www.abc.net.au/news/2019-09-17/ceo-bonuses-soar-as-qantas-boss-alan-joyce-tops-list/11518356">highest-paid chief executive</a>. Alan Joyce is one of the Financial Review’s <a href="https://www.afr.com/work-and-careers/leaders/australia-s-10-most-covertly-powerful-people-20190828-p52lon">ten most covertly powerful people</a>. Alan Joyce writes <a href="https://twitter.com/Qantas/status/1104924677175169026">heartwarming notes to children</a>. Alan Joyce is <a href="https://www.msn.com/en-au/news/australia/qantas-boss-alan-joyce-53-announces-hes-set-to-marry-his-partner-after-20-years-together/ar-AAIbJ0e?li=BBU4PL8">getting married</a>. And he is apparently some sort of <a href="https://www.news.com.au/finance/money/wealth/qantas-chief-executive-alan-joyce-deserved-to-make-24-million-in-2018/news-story/5b25597a186e24adedd01887165e398c">superhero</a>. Something about chief executives brings forth testimonials <a href="https://www.news.com.au/finance/money/wealth/qantas-chief-executive-alan-joyce-deserved-to-make-24-million-in-2018/news-story/5b25597a186e24adedd01887165e398c">like this</a>, published in the News Corporation tabloids last month, which followed the revelation that Joyce was Australia’s highest paid corporate chief (taking home <a href="https://www.abc.net.au/news/2019-09-17/ceo-bonuses-soar-as-qantas-boss-alan-joyce-tops-list/11518356">A$24 million</a> in 2018-19). Penned by Angela Mollard, a journalist specialising in celebrities, it <a href="https://www.news.com.au/finance/money/wealth/qantas-chief-executive-alan-joyce-deserved-to-make-24-million-in-2018/news-story/5b25597a186e24adedd01887165e398c">said he had</a> <blockquote> turned around a failing company, put thousands of dollars in shareholders’ pockets, boosted the superannuation of Mr and Mrs Average and prevented thousands from losing their jobs. </blockquote> Joyce, and all the best chief executives, she argued, were <blockquote> alchemists, strategists, innovators and geniuses. They have the sort of agile brains that produce solutions to problems which seem intractable. They lead not from a textbook but from an internal well of brilliance that seems constantly replenished. </blockquote> Further, executives like Joyce deserved to be rewarded for <blockquote> the risks they take, the entrepreneurship they exhibit, the education they’ve invested in and the particular brand of brilliance that comes along all too rarely. </blockquote> It’s been said before I’ve been examining the language used to describe Australia’s elite executives over the past 100 years, and what’s being said about Joyce is familiar - right down to the use of the word “genius”. This kind of talk, repeated for more than a century now, leads us astray if we keep repeating it. It creates misunderstandings about how large companies work. Chief executives aren’t superhuman, their characteristics are not those of their companies, they don’t single-handedly determine the fate of those companies or personally employ their workers, they aren’t necessarily selfless or patriotic, and they don’t necessarily have the best interests of the nation at heart. <a href="http://adb.anu.edu.au/biography/mackellar-sir-charles-kinnaird-7382">Sir Charles Mackellar</a>, chairman of the Mutual Life & Citizens’ Assurance Company and a director of a host of other companies including the Colonial Sugar Refining Company was labelled a “<a href="https://trove.nla.gov.au/newspaper/article/15572188">genius</a>” when he died in 1914. FA Govett, the London-based head of Australia’s Zinc Corporation was labelled as a “<a href="https://trove.nla.gov.au/newspaper/article/45952519">man of exceptional ability</a>” in 1926. Often they had higher ideals. <a href="http://adb.anu.edu.au/biography/raws-sir-william-lennon-840">Sir William Lennon Raws</a>, a director of four of Australia’s biggest companies including BHP and Elder Smith, was a “<a href="https://trove.nla.gov.au/newspaper/article/146726001">well-meaning capitalist with a dream</a>”. Like Joyce and his contemporaries that work their “<a href="https://www.news.com.au/finance/money/wealth/qantas-chief-executive-alan-joyce-deserved-to-make-24-million-in-2018/news-story/5b25597a186e24adedd01887165e398c">butts off to do the right thing</a>”, Raws was <blockquote> palpably rich and could be richer; but I doubt if the making of another million would be as much to him as the achievement of one of his cherished hopes. </blockquote> It’s their own work Executives have long been seen as the sole reason for their company’s success. In 2019, Joyce single-handedly “<a href="https://www.news.com.au/finance/money/wealth/qantas-chief-executive-alan-joyce-deserved-to-make-24-million-in-2018/news-story/5b25597a186e24adedd01887165e398c">took a beleaguered company and transformed it</a>”. Similarly, in the late 1800s, BHP director <a href="http://adb.anu.edu.au/biography/jamieson-william-6827">William Jamieson</a> was <a href="https://trove.nla.gov.au/newspaper/article/45936299">solely responsible</a> for the development of the Broken Hill region. <a href="http://adb.anu.edu.au/biography/philp-sir-robert-8040">Robert Philp</a> of Burns Philp and Company was an Australian patriot who “<a href="https://trove.nla.gov.au/newspaper/article/120184641">controlled her destinies during a critical period</a>”. Industrialist and car manufacturer <a href="http://adb.anu.edu.au/biography/holden-sir-edward-wheewall-7065">Edward Holden</a> worked tirelessly to “<a href="https://trove.nla.gov.au/newspaper/article/129208064">benefit the state and the company”</a>. Corporate director and university chancellor <a href="https://trove.nla.gov.au/newspaper/article/61634919">Sir Normand Maclaurin</a> was “endowed with talents of a very high order […] having at heart the welfare of the nation”. They’re exceptional Joyce’s success might be due to his “<a href="https://www.news.com.au/finance/money/wealth/qantas-chief-executive-alan-joyce-deserved-to-make-24-million-in-2018/news-story/5b25597a186e24adedd01887165e398c">big dick energy</a>”, but he wasn’t the first. In the early 1900s, <a href="http://adb.anu.edu.au/biography/pratt-joseph-major-8098">Joseph Pratt</a> – director of the National Bank of Australasia, the Land Mortgage Bank, the Melbourne Tramway and Omnibus Company and Metropolitan Gas Company – was described in the most masculine of terms as a <a href="https://trove.nla.gov.au/newspaper/article/145710392">big man</a> <blockquote> tall, erect, well-made and muscular. He has a pleasant, manly face, indicative of straightforwardness and goodness of disposition, and upon which grows a russet beard, containing a few grey hairs… </blockquote> <a href="http://adb.anu.edu.au/biography/sheldon-sir-mark-8411">Sir Mark Sheldon</a> - chairman of the Waterloo Glass Bottle Works, a director of the Australian Bank of Commerce, and vice president of the Sydney Chamber of Commerce - also <a href="https://trove.nla.gov.au/newspaper/article/245762056/26911232">also big </a>, <blockquote> big in his outlook, his ideas, and his accomplishments. Perhaps his height (6 feet, 1.5 inches) enables him to look a bit farther ahead than the ordinary man </blockquote> Painting corporate chiefs like this gives corporations a human face. It helps convince customers and investors that their money is in safe hands. If Alan Joyce is a ‘good man’, then the Qantas Group is seen as a good company. It also makes executives untouchable. After all, if they are blessed with unique or exceptional abilities, and if their company is doing well (whatever the reason), it is hard to argue with the millions being spent on them. Even if it’s $24 million, even if it’s more.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/124167/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> Written by Claire Wright, Research Fellow, Centre for Workforce Futures, Macquarie University. Republished with permission of <a rel="noopener" href="https://theconversation.com/painting-qantas-chief-executive-alan-joyce-as-a-superhero-is-part-of-a-long-australian-tradition-124167" target="_blank">The Conversation</a>.

Retirement Income

Qantas CEO defends his $24 million salary

Qantas CEO Alan Joyce has explained his $23.87 million salary a day after he was named as Australia’s top-earning executive. On Tuesday, Joyce was revealed to be the highest-paid CEO for the 2018 financial year in the <a rel="noopener" href="https://www.oversixty.com.au/finance/retirement-income/alan-joyce-tops-list-of-highest-paid-ceos-in-australia/" target="_blank">Australian Council of Superannuation Investors (ACSI)’s list</a>, taking home more than 275 times the average national full-time wage. Speaking at the National Press Club on Wednesday, Joyce said the increase in his realised pay was due to the company’s “exceptional” turnaround at the time. “My salary is determined by our shareholders. And the reason why – by the way, that information is now over two years’ old, the salary has come down quite significantly since then,” Joyce said. “But that was because the Qantas share price went from $1 to $6. That’s because our market capital went from just over $2 billion to $10 billion. And our shareholders did exceptionally well out of it. “Because the shareholders want the CEO and the management to be incentivised to actually turn the company around. And it was, I think, the biggest turnaround in corporate Australian history. That’s why that happened.” Last month, Joyce’s annual salary was reported at <a rel="noopener" href="https://www.abc.net.au/news/2019-09-17/ceo-bonuses-soar-as-qantas-boss-alan-joyce-tops-list/11518356" target="_blank">$10 million</a>. “Qantas remains one of the best-performing airline groups in the world, but executive pay has dropped twice in the two years since the data in this report,” a Qantas spokesman said. Joyce also addressed the growing rift between businesses and the Scott Morrison government after Ben Morton, assistant minister to the prime minister, said the Coalition did not “<a rel="noopener" href="https://www.smh.com.au/politics/federal/bad-for-democracy-alan-joyce-weighs-in-as-war-of-words-between-government-and-business-intensifies-20190918-p52sq1.html" target="_blank">represent corporate Australia</a>”. In an address to the Business Council of Australia on Wednesday, Morton said businesses should look after the “quiet Australians” instead of catering to “armchair activists” and “shock troops” such as GetUp. “We don’t represent corporate Australia; we represent hard-working middle and aspirational Australia,” Morton said. “Business should explain how what they are proposing will improve the lives of those quiet Australians we represent. “And tell us how they will communicate that to these same people.” Joyce said companies should be able to continue expressing their social and environmental stances, even when they are not in line with government policy. “That’s democracy and companies are part of democracy, we represent individuals, passengers, employees, shareholders,” he said. “We should have a voice on that, and it shouldn’t get to a stage if you don’t agree, don’t speak up, because I think that’s bad for democracy. “I think what the government was saying was that companies should be out there speaking on economic issues as well. My view is we have to do both. We're not going to pull back on what we say on social issues, because that's important to our employees, our customers, our shareholders. “We clearly saw that there was a big business case – even though it was the morally right thing to do, supporting marriage equality – there was a great business case for it.” Joyce and Virgin Australia CEO Paul Scurrah also called for the government to impose more regulations on “monopoly airports”, which they accused of reaping profits through excessive charges at the expense of airlines and passengers. “It absolutely costs a lot more than it should to land an aircraft at these airports,” Joyce said. “Australia is home to four of the five most profitable airports in the world. Funnily enough, none of these airports rate in the best airports in the world.”

Travel Trouble

Alan Joyce tops list of highest-paid CEOs in Australia

Qantas chief executive Alan Joyce has emerged as Australia’s highest-paid executive for 2018, taking home more than 275 times the full-time average wage. Joyce topped the Australian Council of Superannuation Investors (ACSI)’s list of highest-paid ASX100 CEOs for the 2018 financial year with a realised pay of $23.87 million, or a little over 275 times the <a rel="noopener" href="https://www.abc.net.au/news/2019-09-17/ceo-bonuses-soar-as-qantas-boss-alan-joyce-tops-list/11518356" target="_blank">average Australian full-time salary of $86,736</a>. In the same financial year, the airline turned in a <a rel="noopener" href="https://thenewdaily.com.au/money/finance-news/2019/09/16/ceo-salary-top-10/" target="_blank">record $1.6 billion profit</a>. Joyce was one of the only two CEOs receiving more than $20 million in the year, along with Macquarie Group’s Nicholas Moore. Across the nation’s 100 largest companies, the average realised pay declined from $6.23 million in the 2017 financial year to $5.66 million in 2018. Although fixed pay for CEOs have remained largely flat over the decade, the median realised pay for top 100 CEOs has increased by 21 per cent in five years to $4.5 million. ACSI CEO Louise Davidson said the list showed that corporate Australia had a culture of “entitlement”, where executives received bonuses supposedly reserved for outperformance as a given. “Bonuses are being treated as fixed remuneration and a defined part of executive pay,” said Davidson. “These results suggest boards aren’t exercising the discretion they should over remuneration.” Fiona Balzer, policy director of the Australian Shareholders Association, said CEOs should not receive bonuses if they do not exceed targets. “We want to see CEOs having skin in the game so that after three years they should have one year’s fixed remuneration in shares,” Balzer said. “There is no reason why a CEO should get a bonus, unless they do something to really shoot the lights out.” The 10 top paid CEOs based on realised pay in the 2018 financial year: <ol> <li>Alan Joyce, Qantas Airways ($23,876,351)</li> <li>Nicholas Moore, Macquarie Group ($23,855,580)</li> <li>Michael Clarke, Treasury Wine Estates ($19,024,334)</li> <li>Bob Vassie, St Barbara ($13,246,088)</li> <li>Craig Scroggie, NextDC ($12,515,914)</li> <li>Sandeep Biswas, Newcrest Mining ($12,083,392)</li> <li>Brian Benari, Challenger Group ($11,696,001)</li> <li>Raleigh Finlayson, Saracen Mineral Holdings ($11,284,256)</li> <li>Andrew Bassat, Seek ($10,744,472)</li> <li>Colin Goldschmidt, Sonic Healthcare ($10,017,376)</li> </ol>

Retirement Income

Leigh Sales slams Westpac CEO: “Your latest profit was $4.2 billion, can’t you use that?”

Yesterday, Westpac announced that they will be the first of the Big Four banks to increase its variable home loan rates, a move that is expected to be copied by the other financial institutions. In a statement, the bank said its rates would be raised by 0.14 per cent from September 19, saying that the price hike is due to an increase in its wholesale funding costs. However, Westpac made a profit of $4.2 billion, so 7:30 host Leigh Sales questioned why the bank couldn’t put that money towards the increasing costs. Westpac CEO Brian Hartzer attempted to defend his decision, explaining why the cost had to be passed on to customers rather than decreasing the bank's profit. “This is a difficult decision. Any time we are affecting people’s cost of living, it is something that we take very seriously but we borrow the money to fund people’s home loans and the cost has gone up,” Mr Hartzer said. A family with a $300,000 home loan will soon be paying an extra $35 in interest per month, while Aussies with a $500,000 home loan will be forking out an extra $516 a year on interest. Sales put the figures to Mr Hartzer and asked: “An ordinary household has to work within their budget to pay the extra money on their mortgage yet one of the wealthiest institutions can’t do the same?” Mr Hartzer said Westpac had worn the cost for the past six months, hoping it would go down but “we sadly had to conclude this is a more permanent change or certainly it is going to persist for a little while”. Despite the bank’s last profit being up six per cent, Mr Hartzer said the margin has been “significantly impacted” since costs started to rise in February. “Part of my job sometimes is to make difficult decisions that are about the long-term sustainability of our business and that involves addressing increases in funding costs,” Mr Hartzer said. While the CEO said he understood customers “frustration” with the interest rate hike, he said: “At the same time, Leigh, we have to run our business and part of that is to acknowledge the realities of higher funding costs.” The higher interest rates will come into effect on September 9 for all new and existing customers for Westpac and Westpac-owned St George. Westpac said it variable mortgage rate for owner-occupier properties will increase to 5.38 per cent per annum for customers with principal and interest repayments, while residential investment properties will be hit with an interest rate of 5.93 per cent. “Customers wanting to switch from a variable interest only loan to the lower rate principal and interest loan can do so without any penalty or fee,” the bank said. RateCity research director Sally Tindall said Westpac had prolonged their rate hike for longer than the market expected. “Westpac has today asked their variable rate home loan customers to help ease their cost of funding pressures,” Ms Tindall said. “While banks are entitled to make a profit, some Westpac home loan customers will be disappointed with the bank’s decision to increase their interest rate. “Most households will be able to absorb the rate hike, however, anyone who overstretched to get in the market will feel burdened by this extra cost. “Now that Westpac has hiked, taking the brunt of the bad PR, we expect the other three banks to follow suit. “If your lender hikes your interest rate, it’s the perfect time to start considering your options. “Ironically the banks are desperately seeking out customers to boost their lagging profit margins. They’re doing this by offering rock-bottom rates, but only to new customers so if you’ve got a bit of equity in your home, now is a great time to consider refinancing,” she said. What do you think of Westpac boss Brian Hartzer's explanation? Let us know in the comments below.

Retirement Income

Our Partners

Over 60

News

Shop

Catalogues

Newspaper

Contests

Entertainment

Travel

Health

Lifestyle

Finance

Property

Compare

Games

Information

Keep up to date

Search

"Last chance, Mr Banducci": Woolies CEO threatened with jail time

New Woolies CEO's huge salary revealed

Woolies CEO quits after disaster interview

"I think I'm done": The question that made Woolies CEO leave interview

Why Gladys likely won't be the new Optus CEO

Top CEOs make workers’ yearly salaries in just FOUR days

CEO fires 900 employees over Zoom right before holidays

Qantas CEO Alan Joyce on what international travel will actually look like

"Stark but not surprising": Qantas CEO reveals staggering loss

AusPost offers bizarre excuses for CEO's overspending

Karl Stefanovic’s fiery interview with upset CEO of Jim’s Mowing

Woolworths CEO responds to backlash after ‘Made in China’ paper bag furore

Russell Crowe pushes unlikely candidate for League CEO

“Not enough”: Allison Langdon takes a swipe at childcare centre CEO over toddler’s death

5 things CEOs always do before bed

Woman named as highest paid CEO in Australia for first time ever

Why Australia paints Qantas CEO Alan Joyce as a superhero

Qantas CEO defends his $24 million salary

Alan Joyce tops list of highest-paid CEOs in Australia

Leigh Sales slams Westpac CEO: “Your latest profit was $4.2 billion, can’t you use that?”

Our Partners

News

Shop

Catalogues

Newspaper

Contests

Entertainment

Travel

Health

Lifestyle

Finance

Property

Compare

Games

Information

Keep up to date

Search

"Last chance, Mr Banducci": Woolies CEO threatened with jail time

New Woolies CEO's huge salary revealed

Woolies CEO quits after disaster interview

"I think I'm done": The question that made Woolies CEO leave interview

Why Gladys likely won't be the new Optus CEO

Top CEOs make workers’ yearly salaries in just FOUR days

CEO fires 900 employees over Zoom right before holidays

Qantas CEO Alan Joyce on what international travel will actually look like

"Stark but not surprising": Qantas CEO reveals staggering loss

AusPost offers bizarre excuses for CEO's overspending

Karl Stefanovic’s fiery interview with upset CEO of Jim’s Mowing

Woolworths CEO responds to backlash after ‘Made in China’ paper bag furore

Russell Crowe pushes unlikely candidate for League CEO

“Not enough”: Allison Langdon takes a swipe at childcare centre CEO over toddler’s death

5 things CEOs always do before bed

Woman named as highest paid CEO in Australia for first time ever

Why Australia paints Qantas CEO Alan Joyce as a superhero

Qantas CEO defends his $24 million salary

Alan Joyce tops list of highest-paid CEOs in Australia

Leigh Sales slams Westpac CEO: “Your latest profit was $4.2 billion, can’t you use that?”

Our Partners

Join Over60