Australia Post has lost its bid to keep secret the $5.6 million salary paid to its managing director Ahmed Fahour.
A senate committee ruled yesterday that releasing information about the salaries paid to senior executives at the government-owned national carrier was “overwhelmingly in the public interest.”
Australia Post had argued that the move could cause “brand damage” and attract “unwarranted media attention.”
"The committee considers there are no compelling reasons for this particular information about the remuneration of senior executives at Australia Post to be hidden from public scrutiny," the committee said in a statement.
Committee chairman Senator James Paterson revealed Fahour received a $4.4 million salary and a $1.2 million bonus last financial year, making his total package $5.6 million – 10 times more than Prime Minister Malcolm Turnbull is paid. Another five Australia Post executives received between $1.3 million and $1.8 million a year.
Senator Paterson told the ABC that Mr Fahour was Australia's highest paid public servant and his salary should not be hidden from taxpayers. "Listed Australian companies are required by law to disclose senior executive remuneration. We should expect at least the same level of transparency from a government business enterprise which has benefited for many years from government-granted monopoly protection."
In a statement released on Wednesday morning, Australia Post said Fahour's package took into account the "size and complexity" of the organisation:
The remuneration of the executive team, including the Managing Director & Group CEO, is set by the Australia Post Board.
Mr Fahour's total remuneration package takes into account the size and complexity of the organisation, which has an annual turnover of more than $6 billion. It also reflects the large-scale transformation underway and that more than 73 per cent of its revenue comes from the non-regulated side of the business where it is competing with major global players such as DHL, FedEx and Toll.
Mr Fahour's remuneration in FY16 included a performance-based short-term bonus in line with Australia Post returning to profit. The previous year he did not receive a bonus.
Total executive remuneration has not increased since 2014 when the executive last received their full eligible performance bonus.
Since 2007 Australia Post has paid more than $6.3b in dividends and taxes to the Federal Government. Australia Post does not receive any taxpayer funding.
The government-owned national carrier posted a $36 million profit in 2015-16 after a loss of $222 million a year earlier. Australia Post announced major job cuts in 2015, citing the decline of its traditional letter delivery service, and has introduced a wide range of price hikes on commercial and regular mail - a move widely criticised throughout the printing industry.